ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING AMENDMENT BILL 2024

2022-2023-2024

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

As passed by both Houses

Anti-Money Laundering and

Counter-Terrorism Financing

Amendment Bill 2024

No. , 2024

A Bill for an Act to amend the Anti-Money

Laundering and Counter-Terrorism Financing Act

2006 and repeal the Financial Transaction Reports

Act 1988, and for related purposes

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

Contents

Short title ........................................................................................... 1

Commencement ................................................................................. 1

Schedules ........................................................................................... 3

Schedule 1--AML/CTF programs and business groups

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Schedule 2--Customer due diligence

Part 1--Main amendments

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Part 2--Consequential amendments

Banking Act 1959

Commonwealth Electoral Act 1918

Schedule 3--Regulating additional high-risk services

Part 1--Real estate

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Part 2--Dealers in precious metals and stones

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Part 3--Professional services

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Part 4--Transitional provisions

Schedule 4--Legal professional privilege

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Schedule 5--Tipping off offence and disclosure of AUSTRAC

information to foreign countries or agencies

Part 1--Main amendments

Division 1--Tipping off offence

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Division 2--Disclosure of AUSTRAC information to foreign

countries or agencies

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Part 2--Contingent amendments

Intelligence Services Legislation Amendment Act 2024

Schedule 6--Services relating to virtual assets

Part 1--Main amendments

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Part 2--Contingent amendments

Proceeds of Crime Act 2002

Schedule 7--Definition of bearer negotiable instrument

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Schedule 8--Transfers of value and international value

transfer services

Part 1--Transfers of value

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Part 2--International value transfer services

114

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

114

Schedule 9--Powers and definitions

120

Part 1--Examination power

120

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

120

Part 2--Information gathering power

133

Division 1--Main amendments

133

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

133

Division 2--Consequential amendments

138

Freedom of Information Act 1982

138

Part 3--Definitions

139

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

139

Part 4--Contingent amendment

142

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

142

No. , 2024

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iii

Schedule 10--Exemptions

143

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

143

Schedule 11--Repeal of the Financial Transaction Reports Act

1988

158

Part 1--Repeals

158

Financial Transaction Reports Act 1988

158

Part 2--Consequential amendments

159

Division 1--Amendment of the Anti-Money Laundering and

Counter-Terrorism Financing Act 2006

159

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

159

Division 2--Amendments of other Acts

162

Australian Securities and Investments Commission Act 2001

162

Commonwealth Electoral Act 1918

162

Criminal Code Act 1995

163

Freedom of Information Act 1982

163

Proceeds of Crime Act 2002

163

Surveillance Devices Act 2004

163

Part 3--Transitional provisions

164

Schedule 12--Transitional rules

165

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

A Bill for an Act to amend the Anti-Money

Laundering and Counter-Terrorism Financing Act

2006 and repeal the Financial Transaction Reports

Act 1988, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act is the

Anti-Money Laundering and Counter-Terrorism

Financing Amendment Act 2024

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedules 1, 2

and 3

31 March 2026.

31 March 2026

3. Schedule 4

1 July 2026.

1 July 2026

3A. Schedule 5,

item 1

31 March 2026.

31 March 2026

3B. Schedule 5,

item 2

31 March 2025.

31 March 2025

4. Schedule 5,

Part 1, Division 2

31 March 2026.

31 March 2026

5. Schedule 5,

Part 2

The later of:

(a) the commencement of the provisions

covered by table item 3B; and

(b) immediately after the commencement of

item 94 of Schedule 1 to the

Intelligence

Services Legislation Amendment Act

2024

However, the provisions do not commence

at all if the event mentioned in paragraph (b)

does not occur.

6. Schedule 6,

Part 1

31 March 2026.

31 March 2026

7. Schedule 6,

Part 2

The later of:

(a) the commencement of the provisions

covered by table item 6; and

(b) immediately after the commencement of

Schedule 2 to the

Crimes and Other

Legislation Amendment (Omnibus No. 1)

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

Act 2024

However, the provisions do not commence

at all if the event mentioned in paragraph (b)

does not occur.

8. Schedule 7

1 July 2026.

1 July 2026

9. Schedule 8

31 March 2026.

31 March 2026

10. Schedule 9,

Parts 1 to 3

The 28th day after this Act receives the

Royal Assent.

11. Schedule 9,

Part 4

The later of:

(a) the commencement of the provisions

covered by table item 10; and

(b) immediately after the commencement of

item 94 of Schedule 1 to the

Intelligence

Services Legislation Amendment Act

2024

However, the provisions do not commence

at all if the provisions covered by table

item 3B commence before the event

mentioned in paragraph (b) occurs.

12. Schedule 10

31 March 2026.

31 March 2026

13. Schedules 11

and 12

The 28th day after this Act receives the

Royal Assent.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Schedule 1

AML/CTF programs and business groups

Anti-Money Laundering and Counter-Terrorism Financing Amendment

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Schedule 1--AML/CTF programs and

business groups

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 4

Omit:

•

A reporting entity is a financial institution, or other person,

who provides designated services. (Designated services are

listed in section 6.)

substitute:

•

A reporting entity is a person who provides designated

services. (Designated services are listed in section 6.). Lead

entities of certain business groups (known as reporting

groups) are also reporting entities.

•

A reporting entity must have and comply with an AML/CTF

program.

2 Section 4

Omit:

•

Reporting entities must have and comply with anti-money

laundering and counter-terrorism financing programs.

3 Section 5

Insert:

AML/CTF compliance officer

for a reporting entity means the

individual designated as the AML/CTF compliance officer for the

reporting entity under subsection 26J(1).

AML/CTF programs and business groups

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AML/CTF policies

of a reporting entity:

(a) means the policies, procedures, systems and controls of the

reporting entity developed under section 26F; and

(b) if the policies, procedures, systems and controls of the

reporting entity are updated--includes the policies,

procedures, systems and controls as updated.

AML/CTF program

: see section 26B.

4 Section 5 (definition of anti-money laundering and

counter-terrorism financing program)

Repeal the definition.

5 Section 5

Insert:

business group

: see subsection 10A(3).

control

has the meaning given by section 11.

6 Section 5 (definition of control test)

Repeal the definition.

7 Section 5 (definition of designated business group)

Repeal the definition.

8 Section 5

Insert:

governing body

of a reporting entity means:

(a) if the reporting entity is an individual--the individual; or

(b) otherwise--the individual, or group of individuals, with

primary responsibility for the governance and executive

decisions of the reporting entity.

9 Section 5 (definition of joint anti-money laundering and

counter-terrorism financing program)

Repeal the definition.

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10 Section 5

Insert:

lead entity

of a reporting group: see subsection 10A(5).

member

of a reporting group or a business group: see

subsection 10A(4).

ML/TF risk assessment

of a reporting entity:

(a) means the risk assessment undertaken by the reporting entity

under section 26C; and

(b) if the assessment is updated under section 26D--includes the

risk assessment as updated.

11 Section 5 (definition of money laundering and terrorism

financing risk assessment)

Repeal the definition.

12 Section 5

Insert:

proliferation financing

means conduct that amounts to:

(a) an offence against the

Charter of the United Nations Act

1945

, or regulations made under that Act, that is prescribed

by regulations made under this Act for the purposes of this

paragraph; or

(b) an offence against the

Autonomous Sanctions Act 2011

, or a

contravention of regulations made under that Act, that

involves sanctions addressing the proliferation of weapons of

mass destruction; or

Autonomous Sanctions Act 2011

, or a

contravention of regulations made under that Act, that is

prescribed by regulations made under this Act for the

purposes of this paragraph; or

(d) the provision of assets (including funds) or financial services,

or other dealing with assets, in contravention of a law of the

Commonwealth that:

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(i) implements an international agreement, convention or

treaty relating to the proliferation of weapons of mass

destruction; and

(ii) is prescribed by the regulations for the purposes of this

paragraph; or

(e) an offence against a law of a State or Territory that

corresponds to an offence referred to in paragraph (a), (b), (c)

or (d); or

(f) an offence against a law of a foreign country or a part of a

foreign country that corresponds to an offence referred to in

paragraph (a), (b), (c), (d) or (e); or

(g) an offence against a law of the Commonwealth, a State or a

Territory that is prescribed by the regulations for the

purposes of this paragraph.

13 Section 5 (definition of reporting entity)

Repeal the definition, substitute:

reporting entity

means:

(a) a person who provides a designated service; or

(b) the lead entity of a reporting group.

14 Section 5

Insert:

reporting group

: see subsection 10A(1).

senior manager

of a reporting entity means an individual who

makes, or participates in making, decisions that affect the whole, or

a substantial part, of the business of the reporting entity.

15 Section 5 (definition of shell bank)

Omit "section 15", substitute "section 94A".

16 Section 5 (definition of special anti-money laundering and

counter-terrorism financing program)

Repeal the definition.

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Bill 2024

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17 Section 5 (definition of standard anti-money laundering

and counter-terrorism financing program)

Repeal the definition.

18 After subsection 6(6)

Insert:

Designated services provided within business groups

(6A) Despite anything in this section, a service is not a

designated

service

if:

(a) any of the following apply:

(i) a member of a business group provides the service to

another member of the business group;

(ii) the service is of a kind described in item 48 of table 1

and the guarantor and borrower are members of the

same business group;

(iii) the service is of a kind described in item 49 of table 1

and the guarantor and borrower are members of the

same business group;

(iv) the service is of a kind specified in the AML/CTF

Rules; and

(b) the service is not of a kind specified in the AML/CTF Rules;

and

are met.

Note 1:

Item 48 of table 1 covers guaranteeing a loan, where the guarantee is

given in the course of carrying on a business of guaranteeing loans.

Note 2:

Item 49 of table 1 covers making a payment, in the capacity of

guarantor of a loan, to the lender, where the guarantee was given in

the course of carrying on a business of guaranteeing loans.

19 Section 11

Repeal the section, substitute:

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10A Key terms relating to reporting groups

Reporting group

(1) A

reporting group

is:

(a) a business group, where:

(i) at least one person in the group provides a designated

service; and

(ii) each member of the group satisfies such conditions (if

any) as are specified in the AML/CTF Rules; and

(iii) the group is not of a kind that, under the AML/CTF

Rules, is ineligible to be a reporting group to which this

paragraph applies; and

(iv) the conditions (if any) relating to changes in

membership, dissolution, administration or operation of

the group that are specified in the AML/CTF Rules are

satisfied; or

(b) a group of 2 or more persons, where:

(i) each member of the group has elected, in writing, to be

a member of the group, and the election is in force; and

(ii) each election was made in accordance with the

AML/CTF Rules; and

(iii) no member of the group is a member of another group

to which this paragraph applies; and

(iv) each member of the group satisfies such conditions (if

any) as are specified in the AML/CTF Rules; and

(v) the group is not of a kind that, under the AML/CTF

Rules, is ineligible to be a reporting group; and

(vi) the conditions (if any) relating to changes in

membership, dissolution, administration or operation of

the group that are specified in the AML/CTF Rules are

satisfied.

(1A) Subject to subsection (2A), a person may be a member of a group

to which paragraph (1)(b) applies even if the person is a member of

a group to which paragraph (1)(a) applies.

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(1B) The requirement in subparagraph (1)(b)(i) to make a written

election does not apply in relation to a member of a group in the

circumstances specified in the AML/CTF Rules.

(2) Subparagraph (1)(b)(iii) does not apply in the circumstances

specified in the AML/CTF Rules.

(2A) If a person is a member of more than one reporting group, the

AML/CTF Rules may specify circumstances in which that person

is taken, for the purposes of this Act, to be a member of only one

of those reporting groups.

Business groups

(3) A

business group

is a group of 2 or more persons, where either of

the following paragraphs applies:

(a) one person in the group controls each other person in the

group;

(b) the group meets the requirements (if any) specified in the

AML/CTF Rules.

Members of reporting groups and business groups

(4) Each person in a reporting group or a business group is a

member

of that group.

Lead entity of a reporting group

(5) The

lead entity

of a reporting group means the person in the group

that is specified in the AML/CTF Rules as the lead entity for the

reporting group.

Note:

The lead entity of a reporting group is a reporting entity, see the

definition of

reporting entity

in section 5.

11 Meaning of control

(1)

Control

, of a body corporate, is:

(a) having the capacity to cast, or control the casting of, more

than one half of the maximum number of votes that might be

cast at a general meeting of the body corporate; or

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(b) directly or indirectly holding more than one half of the issued

share capital of the body corporate (not including any part of

the issued share capital that carries no right to participate

beyond a specified amount in a distribution of either profits

or capital, and not including mutual capital instruments

within the meaning of section 167AD of the

Corporations

Act 2001

); or

corporate's board or governing body; or

(d) having the capacity to determine the outcome of decisions

about the body corporate's financial and operating policies,

taking into account:

(i) the practical influence that can be exerted (rather than

the rights that can be enforced); and

(ii) any practice or pattern of behaviour affecting the body

corporate's financial or operating policies (whether or

not it involves a breach of an agreement or a breach of

trust).

(2)

Control

, of a person other than a body corporate, is:

(a) having the capacity to control the composition of the

person's board or governing body (if any); or

(b) having the capacity to determine the outcome of decisions

about the person's financial and operating policies, taking

into account:

(i) the practical influence that can be exerted (rather than

the rights that can be enforced); and

(ii) any practice or pattern of behaviour affecting the

person's financial or operating policies (whether or not

it involves a breach of an agreement or a breach of

trust).

20 Subparagraph 14(2)(b)(i)

Omit "passes the control test in relation to", substitute "controls".

21 Subparagraph 14(3)(b)(i)

Omit "passes the control test in relation to", substitute "controls".

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No. , 2024

22 Section 15

Repeal the section.

23 Subsection 21(3)

Omit "regulations" (wherever occurring), substitute "AML/CTF Rules".

24 After Part 1

Insert:

Part 1A--AML/CTF programs

Division 1--Introduction

26A Simplified outline

The following is a simplified outline of this Part:

•

A reporting entity must have and comply with an AML/CTF

program. An AML/CTF program comprises the reporting

entity's ML/TF risk assessment and AML/CTF policies.

•

The ML/TF risk assessment is an assessment of the risks of

money laundering, financing of terrorism and proliferation

financing that the reporting entity may reasonably face in

providing its designated services.

•

The AML/CTF policies must appropriately manage and

mitigate those risks and ensure the reporting entity complies

with this Act and instruments under this Act.

•

The AML/CTF program must be appropriate to the nature,

size and complexity of the reporting entity's business. For a

lead entity of a reporting group, it must be appropriate to the

nature, size and complexity of the business of each reporting

entity in the reporting group.

•

The governing body of the reporting entity has responsibilities

relating to the AML/CTF program, including relating to

AML/CTF programs and business groups

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overseeing and ensuring the reporting entity complies with the

AML/CTF policies, this Act and instruments under this Act.

•

The reporting entity must have an AML/CTF compliance

officer. The AML/CTF compliance officer has various

functions, including to oversee and coordinate the effective

operation of, and compliance with, the AML/CTF policies.

26B What is an AML/CTF program?

AML/CTF program

of a reporting entity comprises:

(a) the reporting entity's ML/TF risk assessment; and

(b) the reporting entity's AML/CTF policies.

Division 2--ML/TF risk assessment

26C Reporting entities must undertake an ML/TF risk assessment

(1) A reporting entity must undertake an assessment (an

ML/TF risk

assessment

) that identifies and assesses the risks of money

laundering, financing of terrorism and proliferation financing that

the reporting entity may reasonably face in providing its designated

services.

(2) The steps taken by a reporting entity in relation to undertaking the

reporting entity's ML/TF risk assessment must be appropriate to

the nature, size and complexity of the reporting entity's business.

Note:

See also section 26U (business of a lead entity of a reporting group).

Additional obligations that apply to reporting entities that provide

designated services at or through permanent establishments in

Australia

(3) If the reporting entity provides designated services at or through a

permanent establishment of the reporting entity in Australia, the

reporting entity must have regard to the following matters in

undertaking an ML/TF risk assessment:

(a) the kinds of designated services provided, or proposed to be

provided, by the reporting entity, including any new or

emerging technologies relating to those services;

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(b) the kinds of customers to whom the reporting entity's

designated services are or will be provided;

designated services are or will be provided, including any

new or emerging technologies relating to those delivery

channels;

(d) the countries with which the reporting entity deals, or will

deal, in providing its designated services;

(e) information communicated either directly or indirectly by

AUSTRAC to the reporting entity that identifies or assesses

the risks associated with the reporting entity's provision of its

designated services;

(f) the matters (if any) specified in the AML/CTF Rules.

(4) Subsection (3) does not limit subsection (1).

26D Reporting entities must review and update ML/TF risk

assessment

Review of ML/TF risk assessment

(1) A reporting entity must review its ML/TF risk assessment for the

purpose of identifying and assessing any new or changed risks of

money laundering, financing of terrorism and proliferation

financing that the reporting entity may reasonably face in

providing its designated services:

(a) if any of the following occur:

(i) there is a significant change to any of the matters

mentioned in subsection 26C(3);

(ii) AUSTRAC communicates to the reporting entity

information that identifies or assesses risks associated

with the reporting entity's provision of its designated

services;

(iii) circumstances specified in the AML/CTF Rules; and

(b) in any event--at least once every 3 years.

(2) The review must be undertaken:

(a) for a significant change that is within the control of the

reporting entity--before the significant change occurs; or

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(b) for a significant change that is not within the control of the

reporting entity--as soon as practicable after the significant

change occurs; or

subparagraph (1)(a)(ii)--as soon as practicable after the

information is communicated to the reporting entity; or

(d) for circumstances specified in the AML/CTF Rules--at the

time, or within the period, specified in the AML/CTF Rules.

(3) The review must be appropriate to the nature, size and complexity

of the reporting entity's business.

Note:

See also section 26U (business of a lead entity of a reporting group).

Updating ML/TF risk assessment

(4) A reporting entity must update its ML/TF risk assessment to

address any issues identified by a review:

(a) for a significant change that is within the control of the

reporting entity--before the significant change occurs; or

(b) in any other case--as soon as practicable after the review is

completed.

26E Reporting entities must have up-to-date ML/TF risk assessment

before providing designated services

(1) A reporting entity must not commence to provide a designated

service to a customer if the reporting entity does not comply with

section 26C or 26D in relation to the designated service.

(2) Subsection (1) is a civil penalty provision.

(3) A reporting entity that contravenes subsection (1) commits a

separate contravention of that subsection in respect of each

designated service that the reporting entity provides to a customer

at or through a permanent establishment of the reporting entity in

Australia.

(4) A reporting entity that contravenes subsection (1) commits a

separate contravention of that subsection on each day that the

reporting entity provides designated services at or through a

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permanent establishment of the reporting entity in a foreign

country.

Division 3--AML/CTF policies

26F Reporting entities must develop and maintain AML/CTF

policies

(1) A reporting entity must develop and maintain policies, procedures,

systems and controls (

AML/CTF policies

) that:

(a) appropriately manage and mitigate the risks of money

laundering, financing of terrorism and proliferation financing

that the reporting entity may reasonably face in providing its

designated services; and

(b) ensure the reporting entity complies with the obligations

imposed by this Act, the regulations and the AML/CTF Rules

on the reporting entity; and

reporting entity's business; and

(d) comply with any requirements specified in the AML/CTF

Rules.

Note:

See also section 26U (business of a lead entity of a reporting group).

Additional obligations that apply to reporting entities that provide

designated services at or through permanent establishments in

Australia

(2) Subsections (3) and (4) apply if the reporting entity provides a

designated service at or through a permanent establishment of the

reporting entity in Australia.

(3) Without limiting paragraph (1)(a), the AML/CTF policies of a

reporting entity must deal with the following:

(a) identifying significant changes to any of the matters

mentioned in subsection 26C(3);

(b) carrying out customer due diligence in accordance with

Part 2;

following circumstances:

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(i) in response to a review of the reporting entity's ML/TF

risk assessment under section 26D;

(ii) circumstances specified in the AML/CTF Rules;

(d) reviewing the AML/CTF policies of the reporting entity at

the intervals or with the frequency specified in the AML/CTF

Rules (and in any event at least once every 3 years);

(e) any other matters specified in the AML/CTF Rules.

(4) Without limiting paragraph (1)(b), the AML/CTF policies of a

reporting entity must deal with the following:

(a) if the reporting entity is not an individual--ensuring its

governing body is sufficiently informed of the risks of money

laundering, financing of terrorism and proliferation financing

that the reporting entity may reasonably face in providing its

designated services;

(b) designating an AML/CTF compliance officer for the

reporting entity;

entity as responsible for approving:

(i) the AML/CTF policies of the reporting entity; and

(ii) the ML/TF risk assessment of the reporting entity;

(d) undertaking due diligence in relation to persons who are, or

will be, employed or otherwise engaged by the reporting

entity and who perform, or will perform, functions relevant

to the reporting entity's obligations under this Act;

(e) providing training to persons who are employed or otherwise

engaged by the reporting entity and who perform, or will

perform, functions relevant to the reporting entity's

obligations under this Act in relation to:

(i) the risk of money laundering, financing of terrorism and

proliferation financing that the reporting entity may

reasonably face in providing its designated services; and

(ii) the obligations imposed by this Act, the regulations and

the AML/CTF Rules on the reporting entity;

(f) the conduct of independent evaluations of the reporting

entity's AML/CTF program, including the frequency with

which such evaluations must be conducted, which must:

(i) be appropriate to the nature, size and complexity of the

reporting entity's business; and

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(ii) be at least once every 3 years;

(g) any other matters specified in the AML/CTF Rules.

Note:

See also section 26U (business of a lead entity of a reporting group).

Additional obligations that apply to lead entities of reporting

groups

(5) Without limiting paragraph (1)(a), if a reporting entity is the lead

entity of a reporting group, the AML/CTF policies of the reporting

entity must deal with the following:

(a) ensuring the appropriate sharing of information between

members of the reporting group for the following purposes:

(i) carrying out customer due diligence under Part 2;

(ii) appropriately identifying, assessing, managing and

mitigating the risks of money laundering, financing of

terrorism and proliferation financing that each reporting

entity that is a member of the reporting group may

reasonably face in providing its designated services;

(b) any other matters specified in the AML/CTF Rules.

(6) Without limiting paragraph (1)(b), if a reporting entity is the lead

entity of a reporting group, the AML/CTF policies of the reporting

entity must deal with the following:

(a) ensuring the sharing of information between members of the

reporting group that is necessary for the members of the

reporting group who are reporting entities to comply with:

(i) their obligations imposed by this Act, the regulations

and the AML/CTF Rules; and

(ii) the AML/CTF policies of the lead entity;

(b) if any member of the reporting group discharges an

obligation imposed on another member of the reporting

group by this Act, the regulations or the AML/CTF Rules:

(i) which members of the reporting group may discharge

which obligations of which other member; and

(ii) ensuring that each member of the reporting group that is

a reporting entity makes, or has access to, records to

demonstrate any discharge by another member of the

reporting group of any such obligations imposed on the

reporting entity;

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information shared between members of the reporting group,

including to prevent any contravention of subsection 123(1)

by any member of the reporting group;

(d) any other matters specified in the AML/CTF Rules.

Note:

For other rules about how this Part applies in relation to reporting

groups, see sections 26U and 236B.

AML/CTF Rules

(7) The AML/CTF Rules may do either or both of the following:

(a) specify requirements that must be complied with in relation

to a matter mentioned in subsection (3), (4), (5) or (6);

(b) set out circumstances in which the AML/CTF policies of a

reporting entity are taken to comply with a matter mentioned

in those subsections.

Reporting entities must develop and maintain AML/CTF policies

before providing designated services

(8) A reporting entity must not commence to provide a designated

service to a customer if the reporting entity does not comply with

subsection (1).

Civil penalty

(8A) Subsection (8) is a civil penalty provision.

(9) A reporting entity that contravenes subsection (8) commits a

separate contravention of that subsection in respect of each

designated service that the reporting entity provides to a customer

at or through a permanent establishment of the reporting entity in

Australia.

(10) A reporting entity that contravenes subsection (8) commits a

separate contravention of that subsection on each day that the

reporting entity provides designated services at or through a

permanent establishment of the reporting entity in a foreign

country.

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Exception

(11) Despite subsection (1), a reporting entity is not required to develop

or maintain policies, procedures, systems and controls that

specifically deal with the risk of proliferation financing if:

(a) the reporting entity reasonably assesses, under section 26C or

26D, the risk of proliferation financing that the reporting

entity may reasonably face as low; and

(b) the reporting entity reasonably assesses that its risk of

proliferation financing can be appropriately managed and

mitigated by its policies, procedures, systems and controls

that manage and mitigate the risks of money laundering or

financing of terrorism.

(12) A person who wishes to rely on subsection (11) bears a legal

burden in relation to that matter.

26G Reporting entities must comply with AML/CTF policies

(1) A reporting entity must comply with the AML/CTF policies of the

reporting entity.

(2) If:

(a) a reporting entity is a member of a reporting group; and

(b) the reporting entity is not the lead entity of the reporting

group;

the reporting entity must also comply with the AML/CTF policies

of the lead entity of the reporting group that apply to the reporting

entity.

Note:

The lead entity of the reporting group must comply with its own

AML/CTF policies under subsection (1).

(3) Subsections (1) and (2) are civil penalty provisions.

Division 4--AML/CTF responsibilities of governing bodies

26H AML/CTF responsibilities of governing bodies

(1) The governing body of a reporting entity must:

(a) exercise appropriate ongoing oversight of:

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(i) the reporting entity's identification and assessment of

risk for the purposes of its ML/TF risk assessment; and

(ii) the reporting entity's compliance with its AML/CTF

policies, the Act, the regulations and the AML/CTF

Rules; and

(b) take reasonable steps to ensure that the reporting entity:

(i) is appropriately identifying, assessing, managing and

mitigating the risks of money laundering, financing of

terrorism and proliferation financing that the reporting

entity may reasonably face in providing its designated

services; and

(ii) is otherwise complying with its AML/CTF policies, the

Act, the regulations and the AML/CTF Rules.

(2) A reporting entity contravenes this subsection if the governing

body of the reporting entity contravenes subsection (1).

(3) Subsection (2) is a civil penalty provision.

Division 5--AML/CTF compliance officers

26J Reporting entities must designate an individual as the

AML/CTF compliance officer for the reporting entity

(1) The reporting entity must designate an individual as the

compliance officer (the

AML/CTF compliance officer

) for the

reporting entity.

AML/CTF compliance officers must have sufficient authority etc.

(2) A reporting entity must ensure that the individual designated as the

AML/CTF compliance officer for the reporting entity:

(a) is a person employed or otherwise engaged by the reporting

entity at management level; and

(b) has sufficient authority, independence and access to

resources and information to ensure the individual can

perform the functions of an AML/CTF compliance officer

effectively.

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AML/CTF compliance officers must meet certain requirements

(3) An individual is not eligible to be designated as the AML/CTF

compliance officer for a reporting entity unless the individual:

(a) if the reporting entity provides its designated services at or

through a permanent establishment of the reporting entity in

Australia--is a resident of Australia; and

(b) is a fit and proper person; and

Rules.

(4) The AML/CTF Rules may specify matters to which a reporting

entity must have regard in determining whether an individual is a

fit and proper person for the purposes of paragraph (3)(b).

Civil penalties

(5) Subsection (2) is a civil penalty provision.

(6) A reporting entity contravenes this subsection if:

(a) the reporting entity designates an individual as its AML/CTF

compliance officer; and

(b) the individual is not eligible under subsection (3) to be

designated as the AML/CTF compliance officer for the

reporting entity.

(7) Subsection (6) is a civil penalty provision.

26K Reporting entities must have an AML/CTF compliance officer

(1) If:

(a) a reporting entity commences to provide a designated

service; and

(b) an individual is not designated as the AML/CTF compliance

officer for the reporting entity;

the reporting entity must, no later than 28 days after the day on

which the reporting entity commences to provide the designated

service, designate an individual as the AML/CTF compliance

officer for the reporting entity.

(2) If:

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(a) a reporting entity commences to provide a designated

service; and

(b) the individual designated as the AML/CTF compliance

officer for the reporting entity ceases to be eligible under

subsection 26J(3) to be so designated;

the reporting entity must, no later than 28 days after the day on

which the individual ceases to be eligible, designate another

individual as the AML/CTF compliance officer for the reporting

entity.

(3) If:

(a) a reporting entity is required under subsection (1) or (2) to

designate an individual as the AML/CTF compliance officer

for the reporting entity by a particular time; and

(b) the reporting entity does not do so by that time;

then the obligation to comply with the requirement continues until:

compliance officer for the reporting entity; or

(d) the reporting entity ceases to be a reporting entity;

whichever occurs first.

(4) A reporting entity that contravenes subsection (1) or (2) by failing

to designate an individual as the AML/CTF compliance officer for

the reporting entity by a particular time (the

deadline

) is taken to

commit a separate contravention of that subsection on each day

that occurs during the period:

(a) beginning on the day on which the deadline occurs; and

(b) ending on the day on which the reporting entity's obligation

to comply with the requirement ends (see subsection (3)).

(5) To avoid doubt, a reporting entity does not contravene

subsection (1) or (2) more than once on any particular day, even if

the reporting entity commences to provide a designated service

more than once on a particular day or during a particular period.

(6) Subsections (1) and (2) are civil penalty provisions.

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26L AML/CTF compliance officer's functions

The functions of the AML/CTF compliance officer for a reporting

entity are:

(a) to oversee and coordinate the reporting entity's day-to-day

compliance with this Act, the regulations and the AML/CTF

Rules; and

(b) to oversee and coordinate the effective operation of and

compliance with the reporting entity's AML/CTF policies;

and

AUSTRAC; and

(d) to do anything incidental to or conducive to the performance

of any of the above functions; and

(e) any other functions specified in the AML/CTF Rules.

26M Reporting entities must notify AUSTRAC of entity's

AML/CTF compliance officer

(1) A reporting entity must notify AUSTRAC of the individual who is

designated as the reporting entity's AML/CTF compliance officer

within 14 days after the individual is designated as the AML/CTF

compliance officer for the reporting entity.

(2) A notice under subsection (1):

(a) must be in the approved form; and

(b) must contain such information, and be accompanied by such

documents, as is required by the approved form.

(3) Subsection (1) is a civil penalty provision.

Division 6--AML/CTF program documentation and

approvals

26N AML/CTF program documentation

(1) A reporting entity must document the following, within the period

(if any) specified in the AML/CTF Rules:

(a) its AML/CTF program;

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(b) any other matter relating to the AML/CTF program of the

reporting entity specified in the AML/CTF Rules.

(2) A reporting entity must comply with subsection (1).

(3) Subsection (2) is a civil penalty provision.

(4) If a reporting entity is the responsible entity of a registered scheme

(within the meaning of the

Corporations Act 2001

), the reporting

entity's AML/CTF program may be documented in the same

document as the registered scheme's compliance plan under that

Act.

26P AML/CTF program approvals

(1) A reporting entity's ML/TF risk assessment and AML/CTF

policies, including any updates to either, must be approved by a

senior manager of the reporting entity.

(2) Any updates to a reporting entity's ML/TF risk assessment must be

notified, in writing, to the governing body of the reporting entity as

soon as practicable after the update is made.

(3) A reporting entity must comply with a requirement under this

section.

(4) Subsection (3) is a civil penalty provision.

26Q Requests for AML/CTF documentation

(1) The AUSTRAC CEO may, by written notice, request a reporting

entity to produce one or more of the documents required by

subsection 26N(1) within the period specified in the notice.

(2) A reporting entity must comply with a notice given under

subsection (1).

(3) Subsection (2) is a civil penalty provision.

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Division 7--Other matters

26R AUSTRAC CEO may require reporting entity to undertake

ML/TF risk assessment etc.

Scope

(1) This section applies if the AUSTRAC CEO is satisfied that:

(a) a reporting entity does not have an AML/CTF program; or

(b) the AML/CTF program of a reporting entity is not up to date;

appropriately identify, assess, manage or mitigate the risk of

money laundering, financing of terrorism and proliferation

financing that the reporting entity may reasonably face in

providing its designated services.

Requirement

(2) The AUSTRAC CEO may, by written notice given to the reporting

entity, require the reporting entity to:

(a) do one or more of the following:

(i) undertake and document an ML/TF risk assessment of

the reporting entity;

(ii) review and update the ML/TF risk assessment of the

reporting entity;

(iii) develop and document AML/CTF policies of the

reporting entity;

(iv) review and update the AML/CTF policies of the

reporting entity; and

(b) provide a copy of the documentation within:

(i) the period specified in the notice; or

(ii) if the AUSTRAC CEO allows a longer period--that

longer period.

(3) A person commits an offence if:

(a) the person is subject to a requirement under subsection (2);

and

(b) the person engages in conduct; and

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Penalty: Imprisonment for 6 months or 30 penalty units, or both.

Civil penalty

(4) A reporting entity must comply with a requirement under

subsection (2).

(5) Subsection (4) is a civil penalty provision.

26S Registered remittance affiliates of a registered remittance

network provider

(1) A reporting entity that is a registered remittance network provider

must make available an AML/CTF program to its registered

remittance affiliates.

(2) Subsection (1) is a civil penalty provision.

(3) To avoid doubt, subsection (1) does not prevent any of the

registered remittance affiliates from:

(a) undertaking a risk assessment for the remittance affiliate; or

(b) developing AML/CTF policies for the remittance affiliate.

(4) If a senior manager of a remittance affiliate of a registered

remittance network provider approves the registered remittance

network provider's:

(a) ML/TF risk assessment; and

(b) AML/CTF policies;

the remittance affiliate is taken to have complied with the

remittance affiliate's obligations under section 26C and 26F in

respect of the remittance affiliate's designated services to which

the registered remittance network provider's AML/CTF program

applies.

26T Application of Part to holders of Australian financial services

licences

(1) This section applies if all of the designated services provided by a

reporting entity are covered by item 54 of table 1 in section 6.

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Note:

Item 54 of table 1 in section 6 covers a holder of an Australian

financial services licence who arranges for a person to receive a

designated service.

(2) Paragraph 26F(1)(a) applies in relation to the reporting entity as if

it instead required policies, procedures, systems and controls that:

(a) relate to undertaking initial customer due diligence in

accordance with section 28; and

(b) are appropriate to the risks of money laundering, financing of

terrorism and proliferation financing that the reporting entity

may reasonably face in providing its designated services.

(3) The following provisions of this Part do not apply to the reporting

entity:

(a) paragraphs 26F(1)(b) and (3)(a) to (d) and subsection 26F(4);

(b) section 26H;

(d) Division 5.

26U Business of a lead entity of a reporting group

In applying this Part in relation to a reporting entity that is the lead

entity of a reporting group, a reference to the nature, size and

complexity of the reporting entity's business is taken to be a

reference to the nature, size and complexity of the business of the

lead entity and each other reporting entity that is a member of the

reporting group.

Note:

For other rules about how this Part applies in relation to a lead entity

of a reporting group, see section 236B.

26V General exemptions

(1) This Part does not apply to a designated service that is of a kind

specified in the AML/CTF Rules.

(2) The AML/CTF Rules may provide that a specified provision of this

Part does not apply to a designated service that is of a kind

specified in the AML/CTF Rules.

(3) This Part does not apply to a designated service that is provided in

circumstances specified in the AML/CTF Rules.

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(4) The AML/CTF Rules may provide that a specified provision of this

Part does not apply to a designated service that is provided in

circumstances specified in the AML/CTF Rules.

25 Subsection 35F(5)

Repeal the subsection.

26 Paragraph 38(d)

Omit "money laundering or financing of terrorism", substitute "money

laundering, financing of terrorism or proliferation financing".

27 Subsection 39(5)

Repeal the subsection.

28 Subsections 47(6) and (7)

Repeal the subsections.

29 Section 51A

Omit:

•

Providers of designated services must be entered on the

Reporting Entities Roll.

substitute:

•

Reporting entities must be entered on the Reporting Entities

Roll.

30 Part 7

Repeal the Part.

31 After section 94

Insert:

94A Shell banks

(1) A

shell bank

is a corporation that:

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(a) is incorporated in a foreign country; and

(b) is authorised to carry on banking business in its country of

incorporation; and

(d) is not an affiliate of another corporation that:

(i) is incorporated in a particular country; and

(ii) is authorised to carry on banking business in its country

of incorporation; and

(iii) has a physical presence in its country of incorporation.

When a corporation has a physical presence in a country

(2) For the purposes of determining what is a shell bank, a corporation

has a

physical presence

in a country if, and only if:

(a) the corporation carries on banking business at a place in that

country; and

(b) at least one full-time employee of the corporation performs

banking-related duties at that place.

When a corporation is affiliated with another corporation

(3) For the purposes of determining what is a shell bank, a corporation

affiliated

with another corporation if, and only if:

(a) the corporation is a subsidiary of the other corporation; or

(b) at least one individual controls both corporations; or

common control.

32 Section 104

Omit:

•

A reporting entity must retain a copy of its anti-money

laundering and counter-terrorism financing program.

substitute:

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•

A reporting entity must retain records relating to its

AML/CTF program.

33 Subsection 108(4)

Repeal the subsection.

34 Subsection 114B(4)

Repeal the subsection.

35 Division 5 of Part 10

Repeal the Division, substitute:

Division 5--AML/CTF program record-keeping

requirements

116 Retention of records relating to Part 1A

(1) A reporting entity must keep records that:

(a) are reasonably necessary to demonstrate compliance with the

reporting entity's obligations under Part 1A; and

(b) are in the English language, or in a form in which the records

are readily accessible and readily convertible into writing in

the English language.

(2) Subsection (1) is a civil penalty provision.

(3) A person who is or was a reporting entity must retain the records

referred to in subsection (1) throughout the period:

(a) beginning at the time the record was made; and

(b) ending 7 years after the record is no longer relevant to the

reporting entity's compliance with its obligations under

Part 1A.

(4) Subsection (3) is a civil penalty provision.

35A Paragraph 123(1)(a)

Repeal the paragraph, substitute:

(a) the person is or has been:

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(i) a reporting entity; or

(ii) an officer, employee or agent of a reporting entity; or

(iii) a member of a reporting group; or

(iv) an officer, employee or agent of a member of a

reporting group; or

(v) required by a notice under subsection 49(1) to give

information or produce documents; or

(vi) required by notice under subsection 49B(2) to give

information or produce documents; and

36 Paragraph 124(2)(a)

After "section", insert "26R,".

37 Paragraph 124(2)(a)

Omit ", 162 or 165", substitute "or 162".

38 Subsection 161(1)

Repeal the subsection, substitute:

(1) This section applies if the AUSTRAC CEO has reasonable grounds

to suspect that a reporting entity has not taken, or is not taking,

appropriate action to identify, assess, manage or mitigate the risks

of money laundering, financing of terrorism and proliferation

financing that the reporting entity may reasonably face in

providing its designated services at or through a permanent

establishment of the reporting entity in Australia.

39 Paragraph 161(2)(b)

Repeal the paragraph, substitute:

(b) arrange for the external auditor to carry out an external audit

of the reporting entity's capacity and endeavours to identify,

assess, manage or mitigate the risks of money laundering,

financing of terrorism and proliferation financing that the

reporting entity may reasonably face in providing its

designated services at or through a permanent establishment

of the reporting entity in Australia; and

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40 Subsection 161(4)

Repeal the subsection, substitute:

(4) The matters that may be specified under paragraph (3)(a) may

include either or both of the following:

(a) an assessment of the risks of money laundering, financing of

terrorism and proliferation financing that the reporting entity

may reasonably face in providing its designated services at or

through a permanent establishment of the reporting entity in

Australia;

(b) an assessment of what the reporting entity will need to do, or

continue to do, to appropriately identify, assess, manage or

mitigate the risks of money laundering, financing of

terrorism and proliferation financing that the reporting entity

may reasonably face in providing its designated services at or

through a permanent establishment of the reporting entity in

Australia.

41 Subparagraph 161(6)(b)(i)

Omit "belongs to a designated business group", substitute "is a member

of a reporting group".

42 Subparagraph 161(6)(b)(ii)

Omit "designated business group", substitute "reporting group".

43 Subparagraph 162(6)(b)(i)

Omit "belongs to a designated business group", substitute "is a member

of a reporting group".

44 Subparagraph 162(6)(b)(ii)

Omit "designated business group", substitute "reporting group".

45 Division 8 of Part 13

Repeal the Division.

46 Subsection 184(4) (before paragraph (b) of the definition

of designated infringement notice provision)

Insert:

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(aa) subsection 26K(1) or (2) (which deal with reporting entities'

obligation to designate an AML/CTF compliance officer);

(ab) subsection 26M(1) (which deals with notifications about

AML/CTF compliance officers);

(ac) subsection 26N(2) (which deals with AML/CTF program

documentation);

(ad) subsection 26P(3) (which deals with AML/CTF program

approvals);

(ae) subsection 26Q(2) (which deals with requests for AML/CTF

program documentation);

47 Subsection 184(4) (paragraph (g) of the definition of

designated infringement notice provision)

Repeal the paragraph, substitute:

(g) subsection 116(1) or (3) (which deal with retaining records

relating to AML/CTF programs);

48 Paragraphs 207(3)(a) and (b)

Omit "designated business group", substitute "reporting group".

49 Section 234

After:

•

In proceedings for a contravention of this Act or the

regulations, it is a defence if the defendant proves that the

defendant took reasonable precautions, and exercised due

diligence, to avoid the contravention.

insert:

•

There is a defence to a contravention of certain civil penalty

provisions relating to the law of a foreign country preventing

compliance.

•

Provision is made in relation to how this Act applies to

reporting groups.

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50 After section 236

Insert:

236A Defence of law of foreign country preventing compliance

(1) A reporting entity does not contravene a civil penalty provision in

Part 1A or 2 if:

(a) the reporting entity provides a designated service at or

through a permanent establishment in a foreign country; and

(b) a law of the foreign country that applies in the place where

the permanent establishment is located prevents the reporting

entity from complying with that civil penalty provision; and

occurs, the reporting entity has given written notice, in the

approved form, to the AUSTRAC CEO of those facts; and

(d) at the time the conduct alleged to constitute the contravention

occurs, the reporting entity is taking reasonable steps to

ensure that the reporting entity is appropriately identifying,

assessing, managing and mitigating any additional risk of

money laundering, terrorism financing or proliferation

financing associated with being prevented from complying

with that civil penalty provision.

(2) A person who wishes to rely on subsection (1) bears a legal burden

in relation to that matter.

236B Application of this Act in relation to reporting groups

Designated services of reporting group taken to be provided by

lead entity for certain purposes

(1) Subsection (2) applies if a reporting entity (the

ordinary member

)

that is a member of a reporting group but is not the lead entity of

the reporting group proposes to provide, commences to provide, or

provides, a designated service.

(2) For the purposes of Parts 1A, 2, 3A and 10, and Division 9 of

Part 15, the lead entity is also taken to have proposed to provide,

commenced to provide, or provided, as the case requires, the

designated service in the same circumstances as those in which the

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service is proposed to be provided, is commenced to have been

provided, or is provided, by the ordinary member.

Note:

In relation to the application of Part 1A to reporting groups, see also

section 26U (business of a lead entity of a reporting group).

(3) For the purposes of subsection (2), the same circumstances include:

(a) that a permanent establishment of the ordinary member is

taken to be a permanent establishment of the lead entity; and

(b) that the lead entity is taken to provide the designated service

in the same capacity as the ordinary member; and

communicated either directly or indirectly by AUSTRAC to

the ordinary member that identifies or assesses the risks

associated with the ordinary member's provision of the

designated service; and

(d) a circumstance specified by the AML/CTF Rules.

(4) Subsection (3) does not limit subsection (2).

Discharge of obligations by members of a reporting group

(5) If:

(a) a reporting entity is a member of a reporting group; and

(b) an obligation is imposed on the reporting entity by a

provision of this Act, the regulations or the AML/CTF Rules;

and

AML/CTF Rules are satisfied; and

(d) the obligation is not of a kind, or does not arise in

circumstances, specified in the AML/CTF Rules;

the obligation may be discharged by any other member of the

reporting group.

Note:

The member who discharges the obligation need not be a reporting

entity.

Contraventions of civil penalty provisions by members of reporting

groups

(6) A civil penalty provision that would otherwise be contravened only

by a reporting entity that is:

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(a) a member of a reporting group; and

(b) not the lead entity of the reporting group;

is taken to have been contravened by both the reporting entity and

the lead entity.

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Customer due diligence

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Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Schedule 2--Customer due diligence

Part 1--Main amendments

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 4

Omit:

•

A reporting entity must carry out a procedure to verify a

customer's identity before providing a designated service to

the customer. However, in special cases, the procedure may be

carried out after the provision of the designated service.

substitute:

•

A reporting entity must undertake initial customer due

diligence before providing a designated service to the

customer. However, in special cases, initial customer due

diligence may be carried out after the provision of the

designated service.

2 Section 4

Omit:

•

Certain pre-commencement customers are subject to modified

identification procedures.

substitute:

•

Certain pre-commencement customers are subject to modified

customer due diligence.

3 Section 4

Omit:

Customer due diligence

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•

Certain low-risk services are subject to modified identification

procedures.

substitute:

•

Simplified customer due diligence may be undertaken in

certain low risk circumstances as part of initial and ongoing

customer due diligence.

4 Section 5 (definition of applicable customer identification

procedure)

Repeal the definition.

5 Section 5

Insert:

beneficial owner

of a person (other than an individual) means an

individual who:

(a) ultimately owns (either directly or indirectly) 25% or more of

the person; or

(b) controls (directly or indirectly) the person.

business relationship

means a relationship between a reporting

entity and a customer involving the provision of a designated

service or designated services that has, or could reasonably be

expected to have, an element of duration.

child

without limiting who is a child of another person for the

purposes of this Act, each of the following is the

child

of a person:

(a) a stepchild or an adopted child of the person;

(b) someone who would be the stepchild of the person except

that the person is not legally married to the person's partner;

the

Family Law Act 1975

de facto partner

has the same meaning as in the

Acts Interpretation

Act 1901

domestic politically exposed person

means:

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(a) an individual who holds an office or position (whether or not

in or for the Commonwealth) specified in the AML/CTF

Rules; or

(b) an individual who is a member of the legislature of the

Commonwealth or of a State or Territory; or

or (b); or

(d) an individual who is known (having regard to information

that is public or readily available) to have:

(i) joint beneficial ownership of a body corporate or legal

arrangement with an individual covered by

paragraph (a) or (b); or

(ii) sole beneficial ownership of a body corporate or legal

arrangement on behalf or for the benefit of an individual

covered by paragraph (a) or (b); or

(iii) any other close business relations with an individual

covered by paragraph (a) or (b).

family member

of an individual who is covered by:

(a) paragraph (a) or (b) of the definition of

domestic politically

exposed person

in this section; or

(b) paragraph (a) of the definition of

foreign politically exposed

person

in this section; or

international organisation

politically exposed person

in this section;

includes:

(d) a spouse, de facto partner, or other person who is equivalent

to a spouse or de facto partner under any applicable law of a

foreign country, of the individual; and

(e) a child of the individual; and

(f) a spouse or de facto partner, or other person who is

equivalent to a spouse or de facto partner under any

applicable law of a foreign country, of a child of the

individual; and

(g) a parent of the individual.

foreign politically exposed person

means:

(a) an individual who holds a prominent office or position or

public function in or for the legislature, executive or judiciary

Customer due diligence

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of a foreign country, including an individual who holds any

of the following offices or positions:

(i) head of state or head of government;

(ii) member of the executive council of government;

(iii) member of a legislature;

(iv) minister, deputy minister or equivalent office or

position;

(v) judge of a supreme court, constitutional court or other

court of general jurisdiction or last resort;

(vi) ambassador, high commissioner or charge d'affaires;

(vii) high ranking military officer;

(viii) head or board member of a government body;

(ix) head or board member of a state-owned company or a

state-owned bank;

(x) member of a governing body of a political party

represented in a legislature;

(xi) an office or position prescribed in the AML/CTF Rules;

(b) a family member of an individual covered by paragraph (a);

that is public or readily available) to have:

(i) joint beneficial ownership of a body corporate or legal

arrangement with an individual covered by

paragraph (a); or

(ii) sole beneficial ownership of a body corporate or legal

arrangement on behalf or for the benefit of an individual

covered by paragraph (a); or

(iii) any other close business relations with an individual

covered by paragraph (a).

Note:

Foreign country

has an extended meaning--see the definition of

foreign country

in this section.

international organisation politically exposed person

means:

(a) an individual who is entrusted with a prominent public

function, position or office of a public international

organisation, including a head, deputy head or board member

in a public international organisation;

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(b) a family member of an individual covered by (a);

that is public or readily available) to have:

(i) joint beneficial ownership of a body corporate or legal

arrangement with an individual covered by

paragraph (a); or

(ii) sole beneficial ownership of a body corporate or legal

arrangement on behalf or for the benefit of an individual

covered by paragraph (a); or

(iii) any other close business relations with an individual

covered by paragraph (a).

KYC information

(short for know your customer information)

about a customer of a reporting entity means information about the

customer that:

(a) provides reasonable grounds for the reporting entity to

establish the matters mentioned in subsection 28(2); or

(b) enables the reporting entity to identify or assess the ML/TF

risk of the customer.

ML/TF risk

, of a customer, means the risks of money laundering,

financing of terrorism and proliferation financing that a reporting

entity may reasonably face in providing its designated service, or

designated services, to the customer.

nested services relationship

means a relationship that involves the

provision of a designated service by a reporting entity that is a

remitter, virtual asset service provider or financial institution to a

customer that is a remitter, virtual asset service provider or

financial institution where:

(a) the reporting entity provides the designated service at or

through a permanent establishment in one country; and

(b) the customer uses the designated service to provide services

to its own customers at or through a permanent establishment

in another country; and

occasional transaction

means the provision of a designated service

by a reporting entity to a customer other than as part of a business

relationship.

Customer due diligence

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parent

: without limiting who is a parent of another person for the

purposes of this Act, a person is the

parent

of another person if the

other person is the person's child because of the definition of

child

in this section.

person designated for targeted financial sanctions

means:

(a) a designated person or entity (within the meaning of

regulations made under the

Charter of the United Nations Act

1945

); or

(b) a designated person or entity (within the meaning of

regulations made under the

Autonomous Sanctions Act 2011

politically exposed person

means:

(a) a domestic politically exposed person; or

(b) a foreign politically exposed person; or

pre-commencement customer

: see subsection 36(1).

public international organisation

has the same meaning as in

section 70.1 of the

Criminal Code.

spouse

of a person includes a de facto partner of the person within

the meaning of the

Acts Interpretation Act 1901

6 Part 2 (heading)

Repeal the heading, substitute:

Part 2--Customer due diligence

7 Divisions 1 to 5 of Part 2

Repeal the Divisions, substitute:

Division 1--Introduction

27 Simplified outline

The following is a simplified outline of this Part:

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•

A reporting entity must undertake initial customer due

diligence before providing a designated service to a customer.

However, in special cases, initial customer due diligence may

be carried out after the provision of the designated service.

•

A reporting entity must undertake ongoing customer due

diligence in relation to the provision by the reporting entity of

designated services.

•

Simplified customer due diligence may be undertaken in

certain low risk circumstances as part of initial and ongoing

customer due diligence.

•

Enhanced customer due diligence must be undertaken in

certain circumstances as part of initial and ongoing customer

due diligence.

•

Certain pre-commencement customers are subject to modified

customer due diligence.

•

Exemptions from initial customer due diligence, and ongoing

customer due diligence, apply in certain circumstances.

Division 2--Initial customer due diligence

28 Undertaking initial customer due diligence

(1) A reporting entity must not commence to provide a designated

service to a customer if the reporting entity has not established on

reasonable grounds each of the matters in subsection (2) in relation

to the customer.

Note 1:

See also section 31 (simplified customer due diligence).

Note 2:

See also section 32 (enhanced customer due diligence).

Note 3:

See section 36 for rules that apply to pre-commencement customers.

(2) The matters are as follows:

(a) the identity of the customer;

(b) the identity of any person on whose behalf the customer is

receiving the designated service;

Customer due diligence

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and their authority to act;

(d) if the customer is not an individual--the identity of any

beneficial owners of the customer;

(e) whether the customer, any beneficial owner of the customer,

any person on whose behalf the customer is receiving the

designated service, or any person acting on behalf of the

customer is:

(i) a politically exposed person; or

(ii) a person designated for targeted financial sanctions;

(f) the nature and purpose of the business relationship or

occasional transaction;

(g) any other matter relating to the customer that is specified in

the AML/CTF Rules.

(3) Without limiting subsection (1), a reporting entity must do the

following for the purposes of establishing on reasonable grounds

the matters in subsection (2):

(a) if the customer is an individual--take reasonable steps to

establish that the customer is the person the customer claims

to be;

(b) identify the ML/TF risk of the customer, based on KYC

information about the customer that is reasonably available to

the reporting entity before commencing to provide the

designated service;

appropriate to the ML/TF risk of the customer;

(d) verify, using reliable and independent data, such of the KYC

information referred to in paragraph (c) as is appropriate to

the ML/TF risk of the customer.

(4) If a reporting entity provides its designated services at or through a

permanent establishment of the reporting entity in Australia, a

reporting entity must take into account the following matters when

identifying the ML/TF risk of the customer for the purposes of

paragraph (3)(b):

(a) the reporting entity's ML/TF risk assessment;

(b) the kind of customer to whom the designated services will be

provided;

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provided, by the reporting entity to the customer;

(d) the delivery channels by which the reporting entity's

designated services are or will be provided to the customer;

(e) the countries with which the reporting entity deals, or will

deal, in providing its designated services to the customer;

(f) the matters (if any) specified in the AML/CTF Rules.

(5) Subsection (4) does not limit the matters a reporting entity may

take into account for the purposes of paragraph (3)(b).

(6) The AML/CTF Rules may do either or both of the following:

(a) specify requirements that must be complied with for the

purposes of establishing on reasonable grounds the matters in

subsection (2);

(b) set out circumstances in which a reporting entity is taken to

comply with a matter mentioned in that subsection.

(7) Without limiting paragraph (2)(g) or (4)(f) or subsection (6),

AML/CTF Rules made for the purposes of any of those provisions

may make different provision in relation to different classes of

customers, including:

(a) customers in relation to whom simplified due diligence

measures may be taken in accordance with section 31; and

(b) customers in relation to whom enhanced customer due

diligence measures must be undertaken in accordance with

section 32.

Note:

This subsection also does not limit subsection 13(3) of the

Legislation

Act 2003

or subsection 33(3AB) of the

Acts Interpretation Act 1901

see section 249.

(8) Subsection (1) is a civil penalty provision.

(9) A reporting entity that contravenes subsection (1) in relation to a

customer commits a separate contravention of that subsection in

respect of each designated service that the reporting entity provides

to the customer at or through a permanent establishment of the

reporting entity in Australia.

(10) A reporting entity that contravenes subsection (1) in relation to a

customer commits a separate contravention of that subsection on

Customer due diligence

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each day that the reporting entity provides designated services to

the customer at or through a permanent establishment of the

reporting entity in a foreign country.

29 Exemptions from initial customer due diligence

Despite subsection 28(1), a reporting entity may commence to

provide a designated service to a customer before the reporting

entity complies with that subsection if:

(a) circumstances specified in the AML/CTF Rules apply; and

(b) the reporting entity determines on reasonable grounds that

commencing to provide the designated service to the

customer before subsection 28(1) is complied with in relation

to the customer is essential to avoid interrupting the ordinary

course of business; and

subsection 28(1) in relation to the customer:

(i) as soon as reasonably practicable after commencing to

provide the designated service to the customer; and

(ii) within the period (if any) specified in the AML/CTF

Rules; and

(d) the reporting entity determines on reasonable grounds that

any additional risk of money laundering, terrorism financing

or proliferation financing associated with complying with

subsection 28(1) in relation to the customer after

commencing to provide the designated service to the

customer is low; and

(e) the reporting entity implements AML/CTF policies to

mitigate and manage the associated risks; and

(f) the reporting entity complies with the requirements (if any)

specified in the AML/CTF Rules.

Division 3--Ongoing customer due diligence

30 Undertaking ongoing customer due diligence

(1) A reporting entity must monitor its customers in relation to the

provision of its designated services to appropriately identify,

assess, manage and mitigate the risks of money laundering,

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financing of terrorism and proliferation financing that the reporting

entity may reasonably face in providing designated services.

Note 1:

See also section 31 (simplified customer due diligence).

Note 2:

See also section 32 (enhanced customer due diligence).

Note 3:

See section 36 for rules that apply to pre-commencement customers.

(2) Without limiting subsection (1), if the reporting entity provides its

designated services at or through a permanent establishment of the

reporting entity in Australia, the reporting entity must:

(a) monitor for unusual transactions and behaviours of customers

that may give rise to a suspicious matter reporting obligation;

and

(b) if the reporting entity has a business relationship with a

customer--review and, where appropriate, update the

reporting entity's identification and assessment of the ML/TF

risk of the customer in the following circumstances:

(i) if there is a significant change to any of the matters

mentioned in subsection 28(4);

(ii) if there are unusual transactions and behaviours in

relation to the customer that may give rise to a

suspicious matter reporting obligation;

(iii) circumstances specified in the AML/CTF Rules; and

customer--review and, where appropriate, update and

reverify KYC information relating to the customer at a

frequency appropriate to the ML/TF risk of the customer, and

if either of the following occur:

(i) the reporting entity has doubts about the adequacy or

veracity of the KYC information relating to the

customer;

(ii) circumstances specified in the AML/CTF Rules; and

(d) if the reporting entity has a business relationship with a

customer that is a pre-commencement customer--monitor for

significant changes in the nature and purpose of the business

relationship that may result in the ML/TF risk of the

customer being medium or high; and

(e) comply with any other requirements specified in the

AML/CTF Rules.

Customer due diligence

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Note:

For

suspicious matter reporting obligation

, see section 41.

(3) The AML/CTF Rules may do either or both of the following:

(a) specify requirements that must be complied with in relation

to the matters mentioned in subsection (2);

(b) set out circumstances in which a reporting entity is taken to

comply with a matter mentioned in that subsection.

(4) Without limiting subparagraph (2)(b)(iii) or (2)(c)(ii),

paragraph (2)(e) or subsection (3), AML/CTF Rules made for the

purposes of any of those provisions may make different provision

in relation to different classes of customers, including:

(a) customers in relation to whom simplified due diligence

measures may be taken in accordance with section 31; and

(b) customers in relation to whom enhanced customer due

diligence measures must be undertaken in accordance with

section 32.

Note:

This subsection also does not limit subsection 13(3) of the

Legislation

Act 2003

or subsection 33(3AB) of the

Acts Interpretation Act 1901

see section 249.

(5) For the purposes of this section,

unusual transactions and

behaviours

of a customer include the following:

(a) unusually large or complex transactions relating to the

customer;

(b) transactions and behaviours that are part of an unusual

pattern of transactions and behaviours relating to the

customer;

or lawful purpose;

(d) transactions and behaviours that are inconsistent with what

the reporting entity reasonably knows about any of the

following:

(i) the customer;

(ii) the nature and purpose of the business relationship;

(iii) the ML/TF risk of the customer;

(iv) where relevant, the customer's source of funds or source

of wealth.

(6) Subsection (1) is a civil penalty provision.

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(7) A reporting entity that contravenes subsection (1) in relation to a

customer commits a separate contravention of that subsection in

respect of each designated service that the reporting entity provides

to the customer at or through a permanent establishment of the

reporting entity in Australia.

(8) A reporting entity that contravenes subsection (1) in relation to a

customer commits a separate contravention of that subsection on

each day that the reporting entity provides designated services to

the customer at or through a permanent establishment of the

reporting entity in a foreign country.

Registered remittance affiliates

(9) If an obligation is imposed by subsection (1) on a reporting entity

in its capacity as a registered remittance affiliate of a registered

remittance network provider, the obligation may be discharged by

the registered remittance network provider.

Exemption

(10) This section does not apply to a designated service covered by

item 54 of table 1 in section 6.

Note:

Item 54 of table 1 in section 6 covers a holder of an Australian

financial services licence who arranges for a person to receive a

designated service.

Division 4--Simplified and enhanced customer due

diligence

31 Simplified customer due diligence

In complying with the obligation imposed on a reporting entity

under subsection 28(1) or 30(1) in relation to a customer, the

reporting entity may apply simplified customer due diligence

measures if:

(a) the ML/TF risk of the customer is low; and

(b) section 32 does not apply to the customer; and

in the AML/CTF Rules.

Customer due diligence

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32 Enhanced customer due diligence obligation

In complying with the obligation imposed on a reporting entity

under subsection 28(1) or 30(1) in relation to a customer, the

reporting entity must apply enhanced customer due diligence

measures appropriate to the ML/TF risk of the customer if one or

more of the following apply to the customer:

(a) the ML/TF risk of the customer is high;

(b) if:

(i) a suspicious matter reporting obligation arises for the

reporting entity in relation to the customer; and

(ii) the reporting entity proposes to continue to provide a

designated service or designated services to the

customer;

person on whose behalf the customer is receiving the

designated service, or any person acting on behalf of the

customer, is a foreign politically exposed person;

(d) the customer, any beneficial owner of the customer, any

person on whose behalf the customer is receiving the

designated service, or any person acting on behalf of the

customer, is:

(i) an individual who is physically present in a high risk

jurisdiction for which the international body known as

the Financial Action Task Force has called for enhanced

due diligence to be applied; or

(ii) a body corporate or legal arrangement that was formed

in a high risk jurisdiction for which the international

body known as the Financial Action Task Force has

called for enhanced due diligence to be applied;

(e) the designated service provided or proposed to be provided

the customer is provided or proposed to be provided

as part

of a nested services relationship;

(f) the customer is of a kind specified in the AML/CTF Rules.

Note:

For

suspicious matter reporting obligation

, see section 41.

8 Division 6 of Part 2

Repeal the Division, substitute:

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Division 6--Pre-commencement customers

36 Pre-commencement customers

(1) A customer of a reporting entity is a

pre-commencement customer

if:

(a) the reporting entity commenced before 12 December 2007 to

provide a designated service covered by an item of table 1, 2

or 3 in section 6 of this Act to the customer; or

(b) the business relationship between the reporting entity and the

customer involved the provision of only any of the following

designated services

in section 6 of this Act as at the start of

1 July 2026:

(i) designated services covered by item 2 of table 2 in

section 6;

(ii) designated services covered by table 5 in section 6;

(iii) designated services covered by table 6 in section 6.

(2) A pre-commencement customer of a reporting entity ceases to be a

pre-commencement customer when the reporting entity complies

with subsection 28(1) in relation to the customer.

(3) Subsection 28(1) and paragraph 30(2)(b) do not apply in relation to

a customer that is a pre-commencement customer.

(4) However, subsection 28(1) applies in relation to a customer that is

a pre-commencement customer if:

(a) a suspicious matter reporting obligation arises for the

reporting entity in relation to the customer; or

(b) there is a significant change in the nature and purpose of the

business relationship with the customer which results in the

ML/TF risk of the customer being medium or high.

Note:

For

suspicious matter reporting obligation

, see section 41.

9 Section 37 (heading)

Omit "

Applicable customer identification procedures

", substitute

Collection and verification of KYC information

Customer due diligence

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10 Subsection 37(1)

Omit "the carrying out by a reporting entity of an applicable customer

identification procedure or an identity verification procedure",

substitute "a reporting entity complying with paragraphs 28(3)(c) and

(d)".

11 Subsection 37(1) (note)

Omit "carrying out the applicable customer identification procedures",

substitute "complying with paragraphs 28(3)(c) and (d)".

12 Subsection 37(2)

Omit "carrying out applicable customer identification procedures or

identity verification procedures", substitute "complying with paragraphs

28(3)(c) and (d)".

13 Subsection 37(3)

Omit "carrying out the applicable customer identification procedure or

an identity verification procedure", substitute "complying with

paragraphs 28(3)(c) and (d)".

14 Section 37A (heading)

Omit "

applicable customer identification procedures

", substitute

collection and verification of KYC information

15 Paragraph 37A(1)(a)

Omit "applicable customer identification procedures", substitute "the

collection and verification of KYC information relating to a customer in

accordance with paragraphs 28(3)(c) and (d)".

16 Subsection 37A(2)

Omit "carried out the applicable customer identification procedure",

substitute "complied with paragraphs 28(3)(c) and (d)".

17 Section 38 (heading)

Omit "

applicable customer identification procedures

", substitute

collection and verification of KYC information

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18 Paragraph 38(b)

Omit "carried out an applicable customer identification procedure",

substitute "complied with paragraph 28(3)(c) or (d)".

19 Section 38

Omit "carried out the applicable customer identification procedure",

substitute "complied with paragraph 28(3)(c) or (d)".

20 Subsection 39(6)

Omit "Division 6", substitute "Divisions 3 and 4".

21 Section 104 (paragraph (a))

Omit "applicable customer identification procedures it carries out or

that it is taken to have carried out", substitute "customer due diligence".

22 Section 104 (paragraph (b))

Omit "applicable customer identification procedures", substitute "the

collection and verification of KYC information about a customer".

23 Division 3 of Part 10 (heading)

Omit "

the carrying out of identification procedures

", substitute

customer due diligence and other procedures

24 Sections 111 to 113

Repeal the sections, substitute:

111 Retention of records of customer due diligence

(1) This section applies to a reporting entity if the reporting entity

complies with section 28 (undertaking initial customer due

diligence) or 30 (undertaking ongoing customer due diligence) in

relation to a customer to whom the reporting entity provides a

designated service, or proposed or proposes to provide a designated

service.

(2) The reporting entity must retain, until the end of the 7 year period

that begins when the business relationship ends or the reporting

entity completes the provision of the occasional transaction,

records that:

Customer due diligence

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(a) are reasonably necessary to demonstrate compliance with the

reporting entity's obligations under Part 2; and

(b) are in the English language, or in a form in which the records

are readily accessible and readily convertible into writing in

the English language.

(3) Without limiting paragraph (2)(a), the records must include:

(a) sufficient and accurate records which demonstrate the type

and content of the data collected by the reporting entity in

relation to the customer for the purposes of complying with

section 28 or 30; and

(b) records of any analysis, identification or assessment of

ML/TF risk, or decision making, undertaken by the reporting

entity in relation to the customer for the purposes of

complying with section 28 or 30.

(4) Subsection (2) is a civil penalty provision.

25 Section 114 (heading)

Omit "

identification procedures

", substitute "

initial customer due

diligence

26 Paragraph 114(1)(b)

Omit "carried out an applicable customer identification procedure",

substitute "complied with paragraph 28(3)(c) or (d)".

27 Section 135 (paragraph (c))

Omit "an applicable customer identification procedure", substitute

"customer due diligence under Part 2".

28 Paragraph 138(1)(a)

Omit "an applicable customer identification procedure", substitute

"customer due diligence".

29 Paragraph 138(1)(b)

Repeal the paragraph, substitute:

(b) the customer due diligence is under section 28 (undertaking

initial customer due diligence) or 30 (undertaking ongoing

customer due diligence).

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30 Subsection 138(2)

Omit "applicable customer identification procedure is under this Act",

substitute "customer due diligence is under section 28 or 30".

31 Paragraph 138(3)(b)

Omit "an applicable customer identification procedure", substitute

"customer due diligence".

32 Paragraph 138(3)(c)

Repeal the paragraph, substitute:

33 Subsection 138(4)

Omit "applicable customer identification procedure is under this Act",

substitute "customer due diligence is under section 28 or 30".

34 Subsection 184(4) (paragraph (a) of the definition of

designated infringement notice provision)

Repeal the paragraph.

35 Subsection 184(4) (before paragraph (fl) of the definition

of designated infringement notice provision)

Insert:

(fk) subsection 111(2) (which deals with retaining records

relating to customer due diligence);

36 Paragraph 235(1)(c)

Repeal the paragraph, substitute:

Customer due diligence

Schedule 2

Consequential amendments

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Part 2--Consequential amendments

Banking Act 1959

37 Subsection 16AH(7) (heading)

Omit "

section 32

", substitute "

section 28

38 Subsection 16AH(7)

Omit "Section 32", substitute "Section 28".

Commonwealth Electoral Act 1918

39 Subsection 90B(4) (table item 6

, column headed "Person

or organisation", paragraph (b))

Omit "carries out applicable customer identification procedures under",

substitute "collects and verifies information relating to a customer in

accordance with section 28 of".

40 Subsection 90B(4) (table item

7, column headed "Person

or organisation")

Omit "carrying out of applicable customer identification procedures

under", substitute "collection or verification of information relating to a

customer in accordance with section 28 of".

41 Subsection 90B(10) (definition of applicable customer

identification procedure)

Repeal the definition.

42 Subsection 91A(2D)

Omit "carry out an applicable customer identification procedure under",

substitute "collect and verify information relating to a customer in

accordance with section 28 of".

Schedule 2

Customer due diligence

Part 2

Consequential amendments

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

43 Subsection 91A(2E)

Omit "carrying out of an applicable customer identification procedure

under", substitute "collection or verification of information relating to a

customer in accordance with section 28 of".

44 Subsection 91A(3) (definition of applicable customer

identification procedure)

Repeal the definition.

Regulating additional high-risk services

Schedule 3

Real estate

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

Schedule 3--Regulating additional high-risk

services

Part 1--Real estate

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 5

Insert:

land

includes:

(a) land in Australia or a foreign country; and

(b) land the subject of a subdivision arrangement.

land use entitlement

means an entitlement to occupy land

conferred through an ownership of shares in a company or units in

a unit trust scheme, or a combination of a shareholding or

ownership of units together with a lease or licence.

real estate

means:

(a) any of the following interests in land in Australia:

(i) a fee simple interest;

(ii) a leasehold interest;

(iii) a land use entitlement; or

(b) an interest, estate, right or entitlement in land in a foreign

country that:

(i) is equivalent to an interest mentioned in paragraph (a);

(ii) otherwise confers ownership rights on the holder of that

interest, estate; right or entitlement; or

but does not include the following:

(d) incorporeal hereditaments;

(e) the interest of a mortgagee;

(f) a leasehold interest under a lease for a term (excluding

options for further terms) of 30 years or less;

Schedule 3

Regulating additional high-risk services

Part 1

Real estate

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

(g) any other interest, estate, right or entitlement in land in a

foreign country that is equivalent to an interest mentioned in

paragraph (d), (e) or (f);

(h) an interest prescribed by the regulations.

subdivision arrangement

means:

(a) an arrangement:

(i) under which the title (whether freehold or leasehold) to

a portion of land is subdivided into separate freehold or

leasehold titles relating to smaller portions of land

within the first-mentioned portion; and

(ii) under which property that is common between the

owners or occupiers of the smaller portions is owned or

managed by a single body corporate (however

described); and

(iii) that exists under a law, of the State or Territory in which

the land is located, relating to "strata titles",

"community titles", "unit titles", "cluster titles" or

something referred to by another term reflecting the

features referred to in subparagraphs (i) and (ii); or

(b) an arrangement under which:

(i) a body corporate owns an interest (whether freehold or

leasehold) in land; and

(ii) under the constitution of the body corporate, a holder of

shares in the body has, or may be granted, a right to

occupy or use some or all of the land, whether the right

is by way of a lease or licence or otherwise; or

subparagraphs apply:

(i) under the arrangement, an interest (whether freehold or

leasehold) in land is held on trust;

(ii) under the terms of the trust, a holder of an interest in the

trust has, or may be granted, a right to occupy or use

part of the land, whether the right is by way of a lease or

licence or otherwise;

(iii) the trustee of the trust is a body corporate;

(iv) there are at least 2 distinct parts of the land for which

subparagraph (ii) is satisfied.

Regulating additional high-risk services

Schedule 3

Real estate

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

2 After subsection 6(5)

Insert:

Table 5--Real estate services

(5A) Table 5 is as follows:

Table 5--Real estate services

Item

Provision of a designated service

Customer of the designated

service

brokering the sale, purchase or

transfer of real estate on behalf of a

buyer, seller, transferee or transferor

in the course of carrying on a

business

both:

(a) the seller or transferor; and

(b) the buyer or transferee

selling or transferring real estate in

the course of carrying on a business

selling real estate, where the sale or

transfer is not brokered by an

independent real estate agent

the buyer or transferee

Schedule 3

Regulating additional high-risk services

Part 2

Dealers in precious metals and stones

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Part 2--Dealers in precious metals and stones

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

3 Section 5 (definition of bullion)

Repeal the definition, substitute:

bullion

means gold, silver, platinum or palladium that:

(a) is in the form of a bar, coin, ingot, plate, wafer or like form

of mass; and

(b) bears a mark or characteristic generally accepted as

identifying and guaranteeing the fineness and quality of the

gold, silver, platinum or palladium; and

the spot price of the gold, silver, platinum or palladium.

4 Section 5

Insert:

precious metal

: see subsection 5A(1).

precious product

: see subsection 5A(6).

precious stone

: see subsection 5A(3).

5 After section 5

Insert:

5A Precious metal, precious stones and precious products

Precious metal

(1) Each of the following substances is a

precious metal

(a) gold;

(b) silver;

Regulating additional high-risk services

Schedule 3

Dealers in precious metals and stones

Part 2

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

(d) iridium;

(e) osmium;

(f) palladium;

(g) rhodium;

(h) ruthenium;

(i) a substance prescribed by the AML/CTF Rules;

(j) an alloy substance with at least 2% in weight of any of the

substances mentioned in paragraphs (a) to (i).

(2) For the purposes of subsection (1), it is immaterial whether the

substance is in a manufactured or unmanufactured state.

Precious stones

(3) A

precious stone

is a substance that:

(a) has gem quality; and

(b) has market-recognised beauty, rarity and value.

(4) For the purposes of subsection (3), it is immaterial whether the

substance is natural, synthetic or reconstructed.

(5) Without limiting subsection (3), each of the following substances is

a kind of

precious stone

(a) beryl;

(b) corundum;

(d) garnet;

(e) jadeite jade;

(f) opal;

(g) pearl;

(h) topaz;

(i) a substance prescribed by the AML/CTF Rules.

Precious products

(6) A

precious product

is any of the following that is made up of,

containing or having attached to it, any precious metal or precious

stone, or both:

(a) jewellery;

Schedule 3

Regulating additional high-risk services

Part 2

Dealers in precious metals and stones

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

(b) a watch;

paragraph (a) or (b);

(d) an article of goldsmiths' or silversmiths' wares.

Examples: A stainless steel watch with rubies set on the watch face, a platinum

tie bar or a gold and pearl necklace.

(7) In subsection (6):

goldsmiths' or silversmiths' wares

include such articles as

ornaments, tableware, smokers' requisites and other articles of

personal, household, office or religious use.

6 Subsection 6(3)

Repeal the subsection, substitute:

Table 2--Bullion and precious metals, stones and products

(3) Table 2 is as follows:

Table 2--Bullion and precious metals, stones and products

Item

Provision of a designated service

Customer of the designated

service

buying or selling bullion, where the

buying or selling is in the course of

carrying on a bullion-dealing

business

the buyer or the seller (as the case

may be)

buying or selling one or more of the

following items in the course of

carrying on a business, where the

purchase involves the transfer of

physical currency or virtual assets

(or a combination of physical

currency and virtual assets) with a

total value of not less than $10,000,

whether the purchase is made in a

single transaction or in several

transactions that are linked or appear

to be linked:

(a) precious metal;

the buyer or the seller (as the case

may be)

Regulating additional high-risk services

Schedule 3

Dealers in precious metals and stones

Part 2

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

Table 2--Bullion and precious metals, stones and products

Item

Provision of a designated service

Customer of the designated

service

(b) precious stones;

(d) any combination of any 2 or

more of the items referred to in

paragraphs (a) to (c)

Schedule 3

Regulating additional high-risk services

Part 3

Professional services

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Part 3--Professional services

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

7 Section 5 (definition of exempt legal practitioner service)

Repeal the definition.

8 Section 5

Insert:

express trust

means a trust expressly and intentionally created in

writing by a settlor but does not include a testamentary trust.

legal arrangement

means:

(a) an express trust; or

(b) a partnership; or

(d) an unincorporated association; or

(e) an arrangement, including a foreign arrangement such as a

fiducie, treuhand or fideicomiso, similar to an arrangement

mentioned in any of the above paragraphs.

nominee shareholder

, in relation to a body corporate or legal

arrangement, means a person who:

(a) holds shares or an interest in the body corporate or legal

arrangement on behalf of another person (the

nominator

);

and

(b) exercises voting rights associated with the shares or interest

according to the instructions of the nominator, or receives

dividends on behalf of the nominator, or both.

9 Subsection 6(2) (table item

46, column headed "Provision

of a designated service", paragraph (b))

Repeal the paragraph, substitute:

(b) the service is not specified in the AML/CTF Rules

Regulating additional high-risk services

Schedule 3

Professional services

Part 3

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

10 Before subsection 6(6)

Insert:

Table 6--Professional services

(5B) Table 6 is as follows:

Table 6--Professional services

Item

Provision of a designated service

Customer of the designated

service

assisting a person in the planning or

execution of a transaction, or

otherwise acting for or on behalf of

a person in a transaction, to sell, buy

or otherwise transfer real estate,

where:

(a) the service is provided in the

course of carrying on a business;

and

(b) the sale, purchase or other

transfer is not pursuant to, or

resulting from, an order of a court or

tribunal

the person

assisting a person in the planning or

execution of a transaction, or

otherwise acting for or on behalf of

a person in a transaction, to sell, buy

or otherwise transfer a body

corporate or legal arrangement,

where:

(a) the service is provided in the

course of carrying on a business;

and

(b) the sale, purchase or other

transfer is not pursuant to, or

resulting from, an order of a court or

tribunal

the person

receiving, holding and controlling

(including disbursing) or managing a

person's:

the person

Schedule 3

Regulating additional high-risk services

Part 3

Professional services

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Table 6--Professional services

Item

Provision of a designated service

Customer of the designated

service

(a) money; or

(b) accounts; or

accounts; or

(d) virtual assets; or

(e) other property;

as part of assisting the person in the

planning or execution of a

transaction, or otherwise acting for

or on behalf of a person in a

transaction, in the course of carrying

on a business (other than in a

circumstance covered by

subsection (5C))

assisting a person in organising,

planning or executing a transaction,

or otherwise acting for or on behalf

of a person in a transaction, for

equity or debt financing relating to:

(a) a body corporate (or proposed

body corporate); or

(b) a legal arrangement (or proposed

legal arrangement);

in the course of carrying on a

business

the person

selling or transferring a shelf

company, in the course of carrying

on a business

the buyer or transferee

assisting a person to plan or execute,

or otherwise acting on behalf of a

person in, the creation or

restructuring of:

(a) a body corporate (other than a

corporation under the

Corporations (Aboriginal and

Torres Strait Islander) Act

the person and:

(a) if the body corporate is a

company and the service is

creating the company--the

beneficial owners and directors

of the company; or

(b) if the legal arrangement is an

express trust and the service is

Regulating additional high-risk services

Schedule 3

Professional services

Part 3

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

Table 6--Professional services

Item

Provision of a designated service

Customer of the designated

service

2006

); or

(b) a legal arrangement;

in the course of carrying on a

business

creating the express trust--the

trustee, settlor and beneficiaries

of the trust

acting as, or arranging for another

person to act as, any of the

following, on behalf of a person (the

nominator

), in the course of

carrying on a business:

(a) a director or secretary of a

company;

(b) a power of attorney of a body

corporate or legal arrangement;

(d) a trustee of an express trust;

(e) a position in any other legal

arrangement that is functionally

equivalent to a position

mentioned in any of the above

paragraphs;

other than in a circumstance covered

by subsection (5E)

the nominator

acting as, or arranging for another

person to act as, a nominee

shareholder of a body corporate or

legal arrangement, on behalf of a

person (the

nominator

), in the

course of carrying on a business

the nominator

providing a registered office address

or principal place of business

address of a body corporate or legal

arrangement, in the course of

carrying on a business

the person to whom the service is

provided

(5C) For the purposes of item 3 of the table in subsection (5B), the

circumstances are as follows:

Schedule 3

Regulating additional high-risk services

Part 3

Professional services

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

(a) the money, accounts, securities, securities accounts, virtual

assets or other property being held or managed is payment by

the person for the provision of goods or services by the

business;

(b) both:

(i) the business does not provide any designated services

other than the services referred to in item 3 of the table

in subsection (5B); and

(ii) the money, accounts, securities, securities accounts,

virtual assets or other property being held or managed is

for payments reasonably incidental to the provision by

the business of a service that is not a designated service;

assets or other property being held or managed is to be

received or payable under an order of a court or tribunal;

(d) the service provided by the business is the receipt or

disbursement of a payment mentioned in subsection (5D);

(e) the service is any other designated service;

(f) a circumstance specified in the AML/CTF Rules.

Note:

An example of a circumstance to which paragraph (b) applies is fees

paid to a barrister for representation in legal proceedings or property

management services.

(5D) For the purposes of paragraph (5C)(d), the payments are:

(a) a payment to or from any of the following:

(i) a government body;

(ii) a court or tribunal of the Commonwealth, a State, a

Territory or a foreign country;

(iii) a public international organisation;

(iv) a person who is licensed under a law of the

Commonwealth, a State or a Territory to provide

insurance, including self-insured licensees; or

(b) a payment of a kind specified in the AML/CTF Rules.

(5E) For the purposes of item 7 of the table in subsection (5B), the

circumstances are:

(a) acting, or arranging for another person to act, in a fiduciary

capacity pursuant to, or as a result of, an order of a court or a

tribunal; or

Regulating additional high-risk services

Schedule 3

Professional services

Part 3

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

(b) acting as the trustee of a regulated debtor's estate (within the

meaning of Schedule 2 to the

Bankruptcy Act 1966

); or

10A Before subsection 6(7)

Insert:

Services provided by barristers on instructions of a solicitor

(6B) Despite anything in this section, a service is not a

designated

service

if the service is provided by a person in the course of legal

practice as a barrister on the instructions of a solicitor, if the

instructions are given in connection with the provision of a

designated service.

Schedule 3

Regulating additional high-risk services

Part 4

Transitional provisions

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Part 4--Transitional provisions

11 Delayed application of certain provisions of this Act

(1)

The following provisions of the

Anti-Money Laundering and

Counter-Terrorism Financing Act 2006

do not apply, until 1 July 2026,

to a reporting entity in its capacity as an entity that provides a

designated service covered by item 2 of table 2, or an item of table 5 or

6, in section 6 of that Act:

(a) Part 1A (which deals with AML/CTF programs);

(b) Part 2 (which deals with customer due diligence);

(d) Divisions 2 to 6 of Part 10 (which deal with record keeping).

(2)

Subject to anything else in this Act or in rules made under Schedule 12

to this Act (which deals with transitional rules), the remaining

provisions of the

Anti-Money Laundering and Counter-Terrorism

Financing Act 2006

apply, on and after the commencement of this item,

to such a reporting entity.

12 Application provision

--timing of enrolment

(1)

This item applies to a person if:

(a) the person provides, or commences to provide, a designated

service covered by item 2 of table 2, or an item of table 5 or

6, in section 6 of the

Anti-Money Laundering and

Counter-Terrorism Financing Act 2006

at any time before

1 July 2026; and

(b) the person does not, as at that time, provide, or commence to

provide, any other designated services.

(2)

Subsection 51B(1) of the

Anti-Money Laundering and

Counter-Terrorism Financing Act 2006

applies to the person, in relation

to the designated service referred to in paragraph (1)(a) of this item, as

if the reference in that subsection to 28 days after the day on which the

person commences to provide the designated service were a reference to

29 July 2026.

Legal professional privilege

Schedule 4

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

Schedule 4--Legal professional privilege

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 5

Insert:

legal professional privilege

includes privilege under Division 1 of

Part 3.10 of the

Evidence Act 1995

LPP form

, in relation to information or a document, means a

written notice that:

(a) is in an approved form; and

(b) specifies the basis on which the information or document is

privileged from being given or produced on the ground of

legal professional privilege; and

form; and

(d) is accompanied by any documents required by the approved

form.

2 After subsection 26Q(2)

Insert:

(2A) If:

(a) a person is given a notice under subsection (1) in relation to

one or more documents; and

(b) the person reasonably believes that the documents are

privileged from being produced on the ground of legal

professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation

to the documents within the period specified in the request.

Note:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

3 Subsection 26Q(3)

Repeal the subsection, substitute:

Schedule 4

Legal professional privilege

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

(3) Subsections (2) and (2A) are civil penalty provisions.

4 Paragraph 41(2)(a)

After "applies", insert "and paragraph (aa) of this subsection does not

apply".

5 After paragraph 41(2)(a)

Insert:

(aa) if:

(i) paragraph (1)(d), (e), (f), (i) or (j) applies; and

(ii) the reporting entity reasonably believes that some (but

not all) of the information required to be contained in

the report may be privileged from being given on the

ground of legal professional privilege; and

(iii) the privilege, if it exists, belongs to a person other than

the reporting entity;

5 business days after the day on which the reporting entity

forms the relevant suspicion; or

6 After subsection 41(2)

Insert:

(2A) Despite subsection (2), the reporting entity may refuse to give the

AUSTRAC CEO a report about the matter if the reporting entity

reasonably believes that all of the information comprising the

grounds on which the reporting entity holds the relevant suspicion

is privileged from being given on the ground of legal professional

privilege.

Note:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

7 After paragraph 41(3)(a)

Insert:

(aa) if the reporting entity reasonably believes that some (but not

all) of the information required to be contained in the report

about the matter is privileged from being given on the ground

of legal professional privilege--be accompanied by an LPP

form in relation to the information; and

Legal professional privilege

Schedule 4

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

8 At the end of subsection 41(3)

Add:

Note 3:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

9 After paragraph 43(3)(a)

Insert:

(aa) if the reporting entity reasonably believes that information

required to be contained in the report about the transaction is

privileged from being given on the ground of legal

professional privilege--be accompanied by an LPP form in

relation to the information; and

10 At the end of subsection 43(3)

Add:

Note 3:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

11 Subsection 49(3)

Repeal the subsection, substitute:

(3) Subsections (2) and (4) are civil penalty provisions.

Legal professional privilege

(4) If:

(a) a person is given a notice under subsection (1) in relation to

information or a document; and

(b) the person reasonably believes that the information or

document is privileged from being given or produced on the

ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation

to the information or document within the period specified in the

notice.

Note:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

12 Before paragraph 49B(5)(a)

Insert:

Schedule 4

Legal professional privilege

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

(aa) subsection (6A);

13 After subsection 49B(6)

Insert:

Legal professional privilege

(6A) If:

(a) a person is given a notice under subsection (2) in relation to

information or a document; and

(b) the person reasonably believes that the information or

document is privileged from being given or produced on the

ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation

to the information or document within the period specified in the

notice.

Note:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

14 Subsection 49B(7)

Repeal the subsection, substitute:

(7) Subsections (6) and (6A) are civil penalty provisions.

15 After paragraph 50(6)(a)

Insert:

(aa) if the reporting entity reasonably believes that information

relating to the matter is privileged from being given on the

ground of legal professional privilege--be accompanied by

an LPP form in relation to the information; and

16 Subsection 50(6) (note)

Omit "Note", substitute "Note 1".

17 At the end of subsection 50(6)

Add:

Note 2:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

Legal professional privilege

Schedule 4

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

18 At the end of section 75N

Add:

(3) If:

(a) a person is given a request under subsection (1) in relation to

information; and

(b) the person reasonably believes that the information is

privileged from being given on the ground of legal

professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation

to the information within the period specified in the request.

(4) Subsection (3) is a civil penalty provision.

Note:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

19 At the end of section 76Q

Add:

(3) If:

(a) a person is given a request under subsection (1) in relation to

information; and

(b) the person reasonably believes that the information is

privileged from being given on the ground of legal

professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation

to the information within the period specified in the request.

(4) Subsection (3) is a civil penalty provision.

Note 1:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

20 Subsection 167(4) (at the end of the heading)

Add "

etc

.".

21 After paragraph 167(4)(a)

Insert:

(aa) subsection (5);

(ab) subsection (6);

Schedule 4

Legal professional privilege

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

22 At the end of section 167

Add:

Legal professional privilege

(5) If:

(a) a person is given a notice under subsection (2) in relation to

information, a document or a copy of a document; and

(b) the person reasonably believes that the information,

document or copy is privileged from being given or produced

on the ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation

to the information, document or copy within the period specified in

the notice.

(6) Subsection (5) is a civil penalty provision.

Note:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

23 Subsection 184(4) (after paragraph (ae) of the definition of

designated infringement notice provision)

Insert:

(af) subsection 26Q(2A) (which deals with providing an LPP

form in relation to certain further information requested);

24 Subsection 184(4) (after paragraph (f) of the definition of

designated infringement notice provision)

Insert:

(fa) subsection 49(4) (which deals with providing an LPP form in

relation to information or documents requested);

25 Subsection 184(4) (after paragraph (fb) of the definition of

designated infringement notice provision)

Insert:

(fc) subsection 49B(6A) (which deals with providing an LPP

form in relation to information or documents requested);

Legal professional privilege

Schedule 4

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

(fd) subsection 50(4) (which deals with providing certain reports

about a card issuer's response, or lack of response to the

AUSTRAC CEO);

(fe) subsection 50(5) (which deals with providing certain reports

about a card issuer's response, or lack of response to the

Commissioner of Taxation);

26 Subsection 184(4) (after paragraph (fh) of the definition of

designated infringement notice provision)

Insert:

(fi) subsection 75N(3) (which deals with providing an LPP form

in relation to certain further information requested);

(fj) subsection 76Q(3) (which deals with providing an LPP form

in relation to certain further information requested);

27 At the end of subsection 184(4) (at the end of the

definition of designated infringement notice provision)

Add:

; (i) subsection 167(5) (which deals with providing an LPP form

in relation to certain information or documents to be

provided to an authorised officer);

(j) subsection 202(5) (which deals with reporting entities

providing an LPP form in relation to certain information or

documents requested by notice).

28 At the end of section 202

Add:

(5) If:

(a) a person is given a notice under subsection (2) in relation to

information or a document; and

(b) the person reasonably believes that the information or

document is privileged from being given or produced on the

ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation

to the information or document within the period specified in the

notice.

(6) Subsection (5) is a civil penalty provision.

Schedule 4

Legal professional privilege

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Note:

For other provisions dealing with legal professional privilege, see

sections 242 and 242A.

29 After paragraph 203(e)

Insert:

(ea) set out the effect of subsections 202(5) and (6) (information

or documents privileged from being given or produced on the

ground of legal professional privilege); and

30 Section 242

Repeal the section, substitute:

242 Legal professional privilege

(1) Nothing in this Act affects the right of a person to refuse to give

information (including by answering a question) or produce a

document if:

(a) the information would be privileged from being given on the

ground of legal professional privilege; or

(b) the document would be privileged from being produced on

the ground of legal professional privilege.

(2) The fact that a person has provided a description of information or

documents that may be or are privileged from being given or

produced on the ground of legal professional privilege does not, of

itself, amount to a waiver of the privilege.

242A Guidelines in relation to legal professional privilege

(1) The Minister may, by notifiable instrument, make guidelines in

relation to making or dealing with claims or assertions of legal

professional privilege in relation to information or documents

required to be given under or for the purposes of this Act.

(2) Without limiting subsection (1), the guidelines may deal with the

following matters:

(a) arrangements for making or dealing with claims or assertions

of legal professional privilege in relation to the exercise of

other powers under this Act, including the use of LPP forms;

Legal professional privilege

Schedule 4

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

(b) facilitating the resolution of disputes in relation to legal

professional privilege.

(3) Before making guidelines under subsection (1), the Minister must

consult with such persons (if any) as the Minister considers

appropriate.

Schedule 5

Tipping off offence and disclosure of AUSTRAC information to foreign

countries or agencies

Part 1

Main amendments

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Schedule 5--Tipping off offence and

disclosure of AUSTRAC information to

foreign countries or agencies

Part 1--Main amendments

Division 1

--Tipping off offence

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 5

Repeal the following definitions:

(a) definition of

AGO

;

(b) definition of

ASD

;

ASIO

;

(d) definition of

ASIS

;

(e) definition of

Attorney-General's Department

;

(f) definition of

corporate group

;

(g) definition of

Department of Foreign Affairs and Trade

;

(h) definition of

DIO

;

(i) definition of

ONI

2 Section 123

Repeal the section, substitute:

123 Offence of tipping off

Offence

(1) A person commits an offence if:

(a) the person is or has been:

(i) a reporting entity; or

(ii) an officer, employee or agent of a reporting entity; or

Tipping off offence and disclosure of AUSTRAC information to foreign countries or

agencies

Schedule 5

Main amendments

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

(iii) required by a notice under subsection 49(1) to give

information or produce documents; or

(iv) required by notice under subsection 49B(2) to give

information or produce documents; and

(b) the person discloses information to another person (other

than an AUSTRAC entrusted person); and

(d) the disclosure of the information would or could reasonably

be expected to prejudice an investigation:

(i) of an offence against a law of the Commonwealth or of

a State or Territory; or

(ii) for the purposes of the

Proceeds of Crime Act 2002

regulations under that Act; or

(iii) for the purposes of a law of a State or Territory that

corresponds to the

Proceeds of Crime Act 2002

regulations under that Act.

Penalty: Imprisonment for 2 years or 120 penalty units, or both.

(2) Information is covered by this subsection if it is any of the

following:

(a) that a reporting entity has given, or is required to give, a

report under subsection 41(2);

(b) a report given under, or prepared for the purposes of,

subsection 41(2);

(d) a document purporting to set out

information (including the

formation or existence of a suspicion) contained in such a

report;

(e) a person is or has been required by a notice under

subsection 49(1) to give information or produce a document;

(f) a person has given information or produced a document in

response to a notice under subsection 49(1);

(g) a person is or has been required by a notice under

subsection 49B(2) to give information or produce a

document;

(h) a person has given information or produced a document in

response to a notice under subsection 49B(2);

Schedule 5

Tipping off offence and disclosure of AUSTRAC information to foreign

countries or agencies

Part 1

Main amendments

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

(i) information referred to in paragraph 16(5A)(a), (b) or (c) or

(5AA)(a) or (b) of the

Financial Transaction Reports Act

1988

, as in force immediately before its repeal.

(3) For the purposes of paragraph (1)(d), it is immaterial whether an

investigation has commenced.

Exception--crime prevention

(4) Subsection (1) does not apply to the disclosure of information

covered by paragraphs (2)(a), (b), (c) or (d) by a person if:

(a) the person is a reporting entity, or an officer, employee or

agent of a reporting entity, that is:

(i) a legal practitioner (however described); or

(ii) a partnership or company that carries on a business of

using legal practitioners (however described) to supply

professional legal services; or

(iii) a qualified accountant; or

(iv) a partnership or company that carries on a business of

using qualified accountants to supply professional

accountancy services; or

(v) a person specified in the AML/CTF Rules; and

(b) the information relates to the affairs of a customer of the

reporting entity; and

purposes of dissuading the customer from engaging in

conduct that constitutes, or could constitute, an offence

against a law of the Commonwealth or of a State or Territory.

Note:

A defendant bears an evidential burden in relation to the matter in

subsection (4) (see subsection 13.3(3) of the

Criminal Code

Exception--information sharing to detect, deter or disrupt money

laundering, the financing of terrorism, proliferation financing, or

other serious crimes

(5) Subsection (1) does not apply if:

(a) the disclosure is made to another reporting entity; and

(b) the disclosure is made for the purpose of detecting, deterring,

or disrupting money laundering, the financing of terrorism,

proliferation financing, or other serious crimes; and

Tipping off offence and disclosure of AUSTRAC information to foreign countries or

agencies

Schedule 5

Main amendments

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

Note:

A defendant bears an evidential burden in relation to the matter in

subsection (5) (see subsection 13.3(3) of the

Criminal Code

Courts and Tribunals

(6) Except where it is necessary to do so for the purposes of giving

effect to this Act, a person is not to be required to disclose to a

court or tribunal information mentioned in subsection (2).

Division 2

--Disclosure of AUSTRAC information to

foreign countries or agencies

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

3 Paragraph 126(2)(a)

Repeal the paragraph, substitute:

(a) both of the following apply:

(i) the making of the record, disclosure or use is for the

purposes of, or in connection with, the performance or

exercise of the person's functions, duties or powers as

an official of a Commonwealth, State or Territory

agency;

(ii) the disclosure is not to the government of a foreign

country or to a foreign agency; or

4 Paragraph 127(2)(a)

Omit "referred to in subsection (3)", substitute "prescribed by the

AML/CTF Rules".

5 Subsection 127(3)

Repeal the subsection.

6 Subsection 127(4)

Omit "referred to in subsection (3)", substitute "prescribed by the

AML/CTF Rules for the purposes of paragraph 127(2)(a)".

Schedule 5

Tipping off offence and disclosure of AUSTRAC information to foreign

countries or agencies

Part 2

Contingent amendments

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Part 2--Contingent amendments

Intelligence Services Legislation Amendment Act 2024

7 Item 94 of Schedule 1

Repeal the item.

Services relating to virtual assets

Schedule 6

Main amendments

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

Schedule 6--Services relating to virtual

assets

Part 1--Main amendments

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 4

Omit "digital currency exchange", substitute "virtual asset".

2 Section 5 (paragraph (a) of the definition of betting

instrument)

Omit "digital currency", substitute "virtual asset".

3 Section 5

Insert:

casino

means a casino operating under a licence granted under a

law of a State or a Territory.

4 Section 5 (definition of digital currency)

Repeal the definition.

5 Section 5 (definition of Digital Currency Exchange Register)

Repeal the definition.

6 Section 5 (definition of property)

Omit "digital currency", substitute "a virtual asset".

7 Section 5 (definition of registered digital currency

exchange provider)

Repeal the definition.

8 Section 5

Insert:

Schedule 6

Services relating to virtual assets

Part 1

Main amendments

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

registered virtual asset service provider

means a person registered

under section 76E as a virtual asset service provider.

9 Section 5 (definition of registrable digital currency

exchange service)

Repeal the definition.

10 Section 5

Insert:

registrable virtual asset service

means a designated service that:

(a) is either of the following:

(i) a designated service covered by item 46A, 50A, 50B or

50C of table 1 in section 6;

(ii) a designated service covered by item 29 or 30 of that

table, if the transfer of value involves the transfer of a

virtual asset (whether or not it also involves the transfer

of money or property); and

(b) is not provided by a financial institution or a casino; and

11 Section 5 (paragraph (b) of the definition of registration)

Omit "digital currency exchange", substitute "virtual asset service".

12 Section 5 (definition of stored value card)

Repeal the definition, substitute:

stored value card

means a thing (whether real or virtual):

(a) that stores monetary value other than physical currency; or

(b) that gives access to monetary value stored in a form other

than physical currency; or

but does not include:

(d) a debit card or a credit card; or

(e) an account for the purposes of items 1 to 3 of table 1 in

section 6 or items 11 to 13 of table 3 in section 6; or

(f) unless prescribed by the AML/CTF Rules for the purposes of

paragraph (c):

Services relating to virtual assets

Schedule 6

Main amendments

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

(i) a thing that is intended to give access to monetary value

in a debit card or credit card account; or

(ii) a gaming chip or token, or a betting instrument; or

(iii) a virtual asset (whether or not pegged to any currency);

(iv) a thing that stores, or gives access to, virtual assets

(whether or not pegged to any currency); or

(v) a card or other thing that is only used to store or access

monetary value for the purposes of purchasing an entry

into a lottery or redeeming winnings in respect of a

lottery, where the monetary value is denominated in a

currency, or is pegged by its issuer to a currency, stored

in a form other than physical currency; or

(g) a thing that, under the AML/CTF Rules, is taken not to be a

stored value card.

13 Section 5 (subparagraph (ca)(i) of the definition of

threshold transaction)

Omit "digital currency", substitute "a virtual asset".

14 Section 5 (paragraph (ca) of the definition of threshold

transaction)

After "amount" (wherever occurring), insert "or value".

15 Section 5 (note 2 to the definition of threshold transaction)

Omit "digital currency", substitute "virtual assets".

16 Section 5

Insert:

virtual asset

has the meaning given by section 5B.

virtual asset safekeeping service

(a) means a service in which virtual assets or private keys are

controlled or managed for or on behalf of a person (the

customer

) or another person nominated by the customer

under an arrangement between the provider of the service and

the customer, or between the provider of the service and

another person with whom the customer has an arrangement

Schedule 6

Services relating to virtual assets

Part 1

Main amendments

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

(whether or not there are also other parties to any such

arrangement); but

(b) does not include a service of a kind prescribed by the

AML/CTF Rules.

Virtual Asset Service Provider Register

has the meaning given by

section 76B.

17 Before section 6

Insert:

5B Meaning of virtual asset

(1) A

virtual asset

is a digital representation of value that:

(a) functions as any of the following:

(i) a medium of exchange;

(ii) a store of economic value;

(iii) a unit of account;

(iv) an investment; and

(b) is not issued by or under the authority of a government body;

and

(2) A

virtual asset

is a digital representation of value that:

(a) enables a person to vote on the management, administration

or governance of arrangements connected with a digital

representation of value; and

(b) is not issued by or under the authority of a government body;

and

(3) A

virtual asset

is a digital representation of value of a kind

prescribed by the AML/CTF Rules.

(4) However, the following are not

virtual assets

(a) money;

(b) a digital representation of value used exclusively within an

electronic game;

Services relating to virtual assets

Schedule 6

Main amendments

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

(d) a digital representation of value that is:

(i) similar to a thing mentioned in paragraph (b) or (c); and

(ii) not intended by the issuer to be convertible into another

digital representation of value or money;

(e) a digital representation of value prescribed by the AML/CTF

Rules.

18 Subsection 6(2) (after table item 46)

Insert:

46A

providing a virtual asset

safekeeping service, where the

service is provided in the course of

carrying on a business as a virtual

asset service provider

the customer of the service

19 Subsection 6(2) (table item 50A)

Repeal the table item, substitute:

50A

exchanging, or making

arrangements for the exchange of:

(a) a virtual asset for money

(whether Australian or not); or

(b) money (whether Australian or

not) for a virtual asset;

for a person, in the course of

carrying on a business as a virtual

asset service provider

the person whose virtual asset or

money is exchanged

20 Subsection 6(2) (after table item 50A)

Insert:

50B

exchanging, or making

arrangements for the exchange of, a

virtual asset for another virtual asset

(whether or not of the same or a

different kind) in the course of

carrying on a business as a virtual

asset service provider

the person whose virtual asset is

exchanged

50C

providing a designated service

mentioned in another item of this

the customer mentioned in the item

Schedule 6

Services relating to virtual assets

Part 1

Main amendments

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

table in connection with the offer or

sale of a virtual asset, where the

service is provided in the course of

carrying on a business participating

in the offer or sale

21 Subsection 6(4) (cell at table item 7, column headed

"Provision of a designated service")

Omit "digital currency", substitute "virtual assets".

22 Subsection 6(4) (cell at table item 7, column headed

"Customer of the designated service")

Omit "digital currency is", substitute "virtual assets are".

23 Subsection 6(4) (cell at table item 8, column headed

"Provision of a designated service")

Omit "digital currency", substitute "virtual assets".

24 Section 19

Repeal the section, substitute:

19 Translation of virtual assets to Australian currency

In determining, for the purposes of this Act, whether the value of a

virtual asset is not less than an Australian dollar amount, the value

of the virtual asset is to be translated to Australian currency in

accordance with the method specified in the AML/CTF Rules.

25 Part 6A (heading)

Omit "

Digital Currency Exchange

", substitute "

Virtual Asset Service

Provider

26 Section 76

Omit "digital currency exchange" (wherever occurring), substitute

"virtual asset".

27 Section 76

Omit "Digital Currency Exchange", substitute "Virtual Asset Service

Provider".

Services relating to virtual assets

Schedule 6

Main amendments

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

28 Division 2 of Part 6A (heading)

Omit "

digital currency exchange

", substitute "

virtual asset

29 Section 76A (heading)

Omit "

digital currency exchange

", substitute "

virtual asset

30 Subsection 76A(1)

Repeal the subsection, substitute:

Registrable virtual asset services

(1) A person (the

first person

) must not provide a registrable virtual

asset service to another person if the first person is not a registered

virtual asset service provider.

31 Subsection 76A(2)

Omit "digital currency exchange", substitute "virtual asset service".

32 Section 76B (heading)

Omit "

Digital Currency Exchange

", substitute "

Virtual Asset Service

Provider

33 Subsections 76B(1), (2) and (3)

Omit "Digital Currency Exchange", substitute "Virtual Asset Service

Provider".

34 Subsection 76B(4)

Omit "Digital Currency Exchange" (wherever occurring), substitute

"Virtual Asset Service Provider".

35 Section 76C (heading)

Omit "

Digital Currency Exchange

", substitute "

Virtual Asset Service

Provider

36 Section 76C

Omit "Digital Currency Exchange", substitute "Virtual Asset Service

Provider".

Schedule 6

Services relating to virtual assets

Part 1

Main amendments

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

37 Subsection 76D(1)

Omit "digital currency exchange", substitute "virtual asset service".

38 Paragraph 76G(2)(a)

Omit "digital currency", substitute "virtual assets".

39 Paragraph 76G(2)(b)

Omit "volume of digital currency", substitute "volume of virtual

assets".

40 Paragraph 76G(2)(b)

Omit "digital currency", substitute "virtual asset".

41 Paragraph 76G(2)(c)

Omit "digital currencies", substitute "virtual assets".

42 Paragraph 76G(2)(d)

Omit "digital currency", substitute "virtual assets".

43 Paragraph 76H(1)(b)

Omit "Digital Currency Exchange", substitute "Virtual Asset Service

Provider".

44 Subsection 76J(2)

Omit "digital currency exchange", substitute "virtual asset".

45 Paragraphs 76K(2)(d) and 76L(2)(d)

Omit "Digital Currency Exchange", substitute "Virtual Asset Service

Provider".

46 Section 76M (heading)

Omit "

Digital Currency Exchange

", substitute "

Virtual Asset Service

Provider

47 Subsection 76M(1)

Omit "digital currency exchange", substitute "virtual asset service".

Services relating to virtual assets

Schedule 6

Main amendments

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

48 Subsections 76M(1), (2) and (3)

Omit "Digital Currency Exchange", substitute "Virtual Asset Service

Provider".

49 Section 76R

Omit "Digital Currency Exchange", substitute "Virtual Asset Service

Provider".

50 Subsections 142(1) and (2)

Omit "digital currency", substitute "virtual asset".

51 Paragraph 142(3)(a)

Omit "digital currency", substitute "virtual asset".

52 Paragraph 184(1A)(e)

Omit "digital currency exchange", substitute "virtual asset".

53 Paragraph 228A(2)(c)

Omit "Digital Currency Exchange", substitute "Virtual Asset Service

Provider".

54 Section 233B (table item 3A)

Omit "digital currency exchange", substitute "virtual asset service".

Schedule 6

Services relating to virtual assets

Part 2

Contingent amendments

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Part 2--Contingent amendments

Proceeds of Crime Act 2002

55 Section 338 (paragraph (ea) of the definition of account)

Repeal the paragraph, substitute:

(ea) an account relating to a

virtual asset, including:

(i) an account representing an amount, or the value, of a

virtual asset; and

(ii) an account provided as part of a

registrable virtual asset

service.

56 Section 338 (paragraph (h) of the definition of account)

Repeal the paragraph, substitute:

(h) in the case of an account relating to a virtual asset--the

balance of the account is expressed as an amount, or the

value, of the virtual asset, or an amount of Australian

currency or any other currency.

57 Section 338 (definitions of digital currency and digital

currency exchange)

Repeal the definitions.

58 Section 338 (paragraph (i) of the definition of financial

institution)

Omit "

digital currency exchange", substitute "

registrable virtual asset

service".

59 Section 338

Insert:

registrable virtual asset service

has the meaning given by the

Anti-Money Laundering and Counter-Terrorism Financing Act

2006

virtual asset

has the meaning given by the

Anti-Money Laundering

and Counter-Terrorism Financing Act 2006

Definition of bearer negotiable instrument

Schedule 7

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

Schedule 7--Definition of bearer negotiable

instrument

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 17

Repeal the section, substitute:

17 Bearer negotiable instruments

(1) A

bearer negotiable instrument

is an instrument that is one of the

following that is payable to bearer:

(a) a bill of exchange;

(b) a cheque;

(d) a bearer bond;

(e) a traveller's cheque;

(f) a money order, postal order or similar order;

(g) a negotiable instrument not covered by any of the above

paragraphs.

(2) Without limiting subsection (1), an instrument is payable to bearer

if the instrument:

(a) is endorsed without restriction; or

(b) does not express a payee; or

(d) is otherwise in such form that title to the instrument passes

on delivery.

Schedule 8

Transfers of value and international value transfer services

Part 1

Transfers of value

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Schedule 8--Transfers of value and

international value transfer services

Part 1--Transfers of value

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 4

Omit "Electronic funds transfer instructions", substitute "Transfers of

value".

2 Section 4

Omit "transferred money", substitute "transferred value".

3 Section 4

Omit "registrable designated remittance services", substitute

"registrable remittance services".

4 Section 5 (definition of batched electronic funds transfer

instruction)

Repeal the definition.

5 Section 5 (definition of beneficiary institution)

Repeal the definition, substitute:

beneficiary institution

: see subsections 63A(5) to (8).

6 Section 5

Repeal the following definitions:

(a) definition of

complete payer information

;

(b) definition of

designated remittance arrangement

;

electronic funds transfer instruction

;

(d) definition of

funds transfer chain

Transfers of value and international value transfer services

Schedule 8

Transfers of value

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

7 Section 5

Insert:

institution

: see subsection 63A(12).

intermediary institution

: see subsections 63A(9) and (10).

8 Section 5

Repeal the following definitions:

(a) definition of

multiple-institution person-to-person electronic

funds transfer instruction

;

(b) definition of

multiple-institution same-person electronic

funds transfer instruction

;

non-financier

9 Section 5 (definition of ordering institution)

Repeal the definition, substitute:

ordering institution

: see subsections 63A(1) to (4).

10 Section 5

Repeal the following definitions:

(a) definition of

payee

;

(b) definition of

payer

11 Section 5 (definition of registrable designated remittance

service)

Repeal the definition.

12 Section 5

Insert:

registrable remittance service

means a designated service that:

(a) is covered by item 29 or 30 of table 1 in section 6; and

(b) is provided by a person (other than a financial institution or

casino) at or through a permanent establishment of the person

in Australia; and

Schedule 8

Transfers of value and international value transfer services

Part 1

Transfers of value

100

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

(d) is not of a kind specified in the AML/CTF Rules.

13 Section 5

Repeal the following definitions:

(a) definition of

remittance arrangement

;

(b) definition of

required transfer information

;

same-institution person-to-person electronic

funds transfer instruction

;

(d) definition of

same-institution same-person electronic funds

transfer instruction

;

(e) definition of

tracing information

14 Section 5

Insert:

transfer message

, for a transfer of value, means a message that

contains information relating to the content of the payer's

instruction for the transfer of value, but does not include a message

of a kind specified in the AML/CTF Rules.

transfer of value

means a transfer of money, virtual assets or

property, but does not include:

(a) a transfer of physical currency or other tangible property; or

(b) a transfer of a kind specified in the AML/CTF Rules.

15 Section 5

Repeal the following definitions:

(a) definition of

transferor entity

;

(b) definition of

ultimate transferee entity

;

unique reference number

16 Section 5

Insert:

value transfer chain

: see subsection 63A(11).

17 Subsection 6(2) (table items 29 to 32)

Repeal the items, substitute:

Transfers of value and international value transfer services

Schedule 8

Transfers of value

Part 1

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

101

in the capacity of ordering

institution, accepting an instruction

for the transfer of value on behalf of

a payer

the payer

in the capacity of beneficiary

institution, in relation to a transfer

of value, making the transferred

value available to a payee

the payee

in the capacity of intermediary

institution, passing on a transfer

message for a transfer of value in a

value transfer chain to another

intermediary institution or to the

beneficiary institution

the ordering institution or

intermediary institution from which

the transfer message is received (as

the case may be)

18 Subsection 6(2) (table item 32A, column headed

"Provision of a designated service", paragraph (a))

Omit "31 or 32", substitute "29 or 30".

19 Subsection 6(2) (table item 32A, column headed

"Provision of a designated service", paragraph (b))

Omit "a non-financier", substitute "not a financial institution".

20 Sections 8 to 10

Repeal the sections.

21 Part 5 (heading)

Repeal the heading, substitute:

Part 5--Obligations relating to transfers of value

22 Divisions 1 to 3 of Part 5

Repeal the Divisions, substitute:

Schedule 8

Transfers of value and international value transfer services

Part 1

Transfers of value

102

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Division 1--Introduction

63 Simplified outline

The following is a simplified outline of this Part.

•

An ordering institution, a beneficiary institution and an

intermediary institution in a transfer of value must fulfil

certain obligations in relation to the transfer.

•

The obligations of an ordering institution relate to the

information the institution collects, verifies and provides as

part of the transfer.

•

The obligations of a beneficiary institution relate to the

information the institution receives or otherwise obtains as

part of the transfer.

•

The obligations of an intermediary institution relate to the

information the institution receives and provides as part of

the transfer.

•

Additional obligations apply if the transfer of value is a

transfer of a virtual asset.

63A Key terms relating to transfers of value

Ordering institutions

(1) Whether a person is an

ordering institution

is to be determined in

accordance with the AML/CTF Rules.

(2) Without limiting subsection (1), AML/CTF Rules made for the

purposes of that subsection may specify the following:

(a) criteria or other requirements that a person must satisfy to be

an ordering institution;

(b) circumstances in which a person is an ordering institution.

(4) However, none of the following persons are an

ordering

institution

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(a) a person who transfers value in circumstances where the

transfer is reasonably incidental to the provision of another

service unless:

(i) the person is a financial institution; or

(ii) the person is providing an international value transfer

service incidentally to a designated service covered by

item 50, 50A or 50B of table 1 in section 6; or

(iii) the person is providing an international value transfer

service incidentally to a designated service covered by

table 3 in section 6;

(b) a person specified in the AML/CTF Rules.

Beneficiary institutions

(5) Whether a person is a

beneficiary institution

is to be determined in

accordance with the AML/CTF Rules.

(6) Without limiting subsection (5), AML/CTF Rules made for the

purposes of that subsection may specify the following:

(a) criteria or other requirements that a person must satisfy to be

a beneficiary institution;

(b) circumstances in which a person is a beneficiary institution.

(8) However, none of the following persons are a

beneficiary

institution

(a) a person who makes value available in circumstances where

the making available of the value is reasonably incidental to

the provision of another service unless:

(i) the person is a financial institution;

(ii) the person is providing an international value transfer

service incidentally to a designated service covered by

item 50, 50A or 50B of table 1 in section 6;

(iii) the person is providing an international value transfer

service incidentally to a designated service covered by

table 3 in section 6;

(b) a person specified in the AML/CTF Rules.

Intermediary institution

(9) A person is an

intermediary institution

if the person:

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(a) in the course of carrying on a business, receives and passes

on a transfer message for a transfer of value in a value

transfer chain; or

(b) is specified in the AML/CTF Rules.

(10) However, none of the following persons are an

intermediary

institution

(a) a person who solely provides the infrastructure that permits

persons to send transfer messages for a transfer of value to

another person in the value transfer chain;

(b) a person who is specified in the AML/CTF Rules.

Value transfer chain

(11) The following persons are taken to form a

value transfer chain

(a) the ordering institution;

(b) each intermediary institution (if any) between the ordering

institution and the beneficiary institution;

Institutions

(12) Each person in a value transfer chain is an

institution

Payer and payee may be same person etc.

(13) For the purposes of this Act:

(a) the payer and the payee in relation to a transfer of value may

be the same person; and

(b) the ordering institution and the beneficiary institution in

relation to a transfer of value may be the same person.

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Division 2--Obligations of institutions

64 Obligations of ordering institutions

Scope

(1) This section applies if an ordering institution commences to

provide the designated service covered by item 29 of table 1 in

section 6.

Note 1:

For exemptions, see sections 67 and 67A.

Note 2:

An ordering institution may also have obligations under the

Autonomous Sanctions Act 2011

and the

Charter of the United

Nations Act 1945

in relation to persons designated for targeted

financial sanctions.

Obligations of ordering institution

(2) Before the ordering institution passes on a transfer message for the

transfer of value, or otherwise gives effect to the transfer of value,

the ordering institution must:

(a) collect the information specified in the AML/CTF Rules; and

(b) if required by the AML/CTF Rules--verify the information

specified in the AML/CTF Rules in accordance with sections

28 and 30 (as applicable).

(3) If the ordering institution and the beneficiary institution for the

transfer of value are not the same person, the ordering institution

must pass on the information specified in the AML/CTF Rules

relating to the transfer of value to the next institution in the value

transfer chain.

(4) If the transfer message for the transfer of value does not give effect

to the transfer of value then, for the purposes of subsection (3), the

message must be passed on before, or at the same time as, the

ordering institution gives effect to the transfer of value.

(5) The ordering institution must provide the following information to

another institution in the value transfer chain as soon as practicable

after receiving a request from the institution for that information:

(a) the information specified by the AML/CTF Rules for the

purposes of paragraph (2)(a);

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(b) the information specified by the AML/CTF Rules for the

purposes of subsection (3).

AML/CTF Rules

(6) AML/CTF Rules made for the purposes of this section may make

different provision in relation to different kinds of institutions,

information, circumstances or any other matter. This does not limit

subsection 33(3A) of the

Acts Interpretation Act 1901

Civil penalty

(7) Subsections (2), (3) and (5) are civil penalty provisions.

65 Obligations of beneficiary institutions

Scope

(1) This section applies if a beneficiary institution commences to

provide the designated service covered by item 30 of table 1 in

section 6 to a payee.

Note:

For exemptions, see sections 67 and 67A.

Obligations of beneficiary institution

(2) The beneficiary institution must take reasonable steps to monitor:

(a) whether it has received the information specified in the

AML/CTF Rules relating to the transfer of value; and

(b) whether the information received about the payee is accurate.

(3) If:

(a) the beneficiary institution:

(i) detects that it has not received all of the information

mentioned in paragraph (2)(a); and

(ii) has not otherwise obtained the information; or

(b) the beneficiary institution detects that some or all of the

information received or otherwise obtained about the payee is

not accurate;

then the beneficiary institution must, in accordance with its

AML/CTF program, do at least one of the following:

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(d) take such other action as the beneficiary institution

determines.

Note:

See also section 26G (reporting entities must comply with AML/CTF

policies).

AML/CTF Rules

(4) AML/CTF Rules made for the purposes of this section may make

different provision in relation to different kinds of institutions,

information, circumstances or any other matter. This does not limit

subsection 33(3A) of the

Acts Interpretation Act 1901

Civil penalty

(5) Subsection (2) is a civil penalty provision.

66 Obligations of intermediary institutions

Scope

(1) This section applies if an intermediary institution commences to

provide the designated service covered by item 31 of table 1 in

section 6 in relation to a transfer of value.

Note 1:

For exemptions, see section 67.

Note 2:

An intermediary institution may also have obligations under the

Autonomous Sanctions Act 2011

and the

Charter of the United

Nations Act 1945

in relation to persons designated for targeted

financial sanctions.

Obligations of intermediary institutions

(2) The intermediary institution must take reasonable steps to monitor

whether it has received the information specified in the AML/CTF

Rules relating to the transfer of value.

(3) If the intermediary institution detects that it has not received all of

the information mentioned in subsection (2), and the intermediary

institution has not otherwise obtained the information, the

intermediary institution must, in accordance with its AML/CTF

program, do at least one of the following:

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(a) refuse to pass on the transfer message for the transfer of

value;

(b) take such other action as the intermediary institution

determines.

Note:

See also section 26G (reporting entities must comply with AML/CTF

policies).

(4) In passing on a transfer message for a transfer of value, the

intermediary institution must include:

(a) information, of a kind specified in the AML/CTF Rules, that

is received from the previous institution in the value transfer

chain; or

(b) information obtained in accordance with the intermediary

institution's AML/CTF program that is relevant to the

transfer.

(5) The intermediary institution must provide the information referred

to in subsection (4) to another institution in the value transfer chain

as soon as practicable after receiving a request from the institution

for that information.

AML/CTF Rules

(6) AML/CTF Rules made for the purposes of this section may make

different provision in relation to different kinds of institutions,

information, circumstances or any other matter. This does not limit

subsection 33(3A) of the

Acts Interpretation Act 1901

Civil penalty

(7) Subsections (2), (4) and (5) are civil penalty provisions.

66A Obligations of ordering and beneficiary institutions relating to

virtual asset transfers

Scope

(1) This section applies to the transfer of a virtual asset.

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Ordering institution obligations

(2) Before commencing to provide the designated service covered by

item 29 of table 1 in section 6, an ordering institution must

undertake due diligence to determine, on reasonable grounds,

whether the virtual asset wallet to which the virtual asset is being

transferred is:

(a) a custodial wallet controlled by a person who is licensed or

registered under a law that gives effect to the FATF

Recommendations; or

(b) a custodial wallet controlled by a person who is not required

to be licensed or registered under a law that gives effect to

the FATF Recommendations; or

be licensed or registered under a law that gives effect to the

FATF Recommendations, but is not so licensed or registered;

(d) a self-hosted wallet controlled by the payee.

(3) The ordering institution must pass on the information specified in

the AML/CTF Rules for the purposes of subsection 64(3) relating

to the transfer of value to a beneficiary institution if the beneficiary

institution is:

(a) a person who is licensed or registered under a law that gives

effect to the FATF Recommendations; or

(b) a person who is not required to be licensed or registered

under a law that gives effect to the FATF Recommendations.

(4) An ordering institution must not provide the designated service

covered by item 29 of table 1 in section 6 if this would involve

passing on a transfer message for a transfer of value to a person:

(a) who is required to be licensed or registered under a law that

gives effect to the FATF Recommendations; but

(b) is not so licensed or registered.

Beneficiary institution obligations

(5) Before commencing to provide the designated service covered by

item 30 of table 1 in section 6, a beneficiary institution must

undertake due diligence to determine, on reasonable grounds,

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whether the virtual asset wallet from which the virtual asset has

been transferred is:

(a) a custodial wallet controlled by a person who is licensed or

registered under a law that gives effect to the FATF

Recommendations; or

(b) a custodial wallet controlled by a person who is not required

to be licensed or registered under a law that gives effect to

the FATF Recommendations; or

be licensed or registered under a law that gives effect to the

FATF Recommendations, but is not so licensed or registered;

(d) a self-hosted wallet controlled by the payer.

(6) A beneficiary institution must not provide the designated service

covered by item 30 of table 1 in section 6 in relation to a transfer of

value until the beneficiary institution has received or otherwise

obtained the information specified in the AML/CTF Rules for the

purposes of subsection 65(2) in relation to the transfer.

(7) A beneficiary institution must not provide the designated service

covered by item 30 of table 1 in section 6 if:

(a) the virtual asset wallet from which the virtual asset has been

transferred is a custodial wallet controlled by a person who is

required to be licensed or registered under a law that gives

effect to the FATF Recommendations; and

(b) the person is not so licensed or registered.

Civil penalty

(8) Subsections (2) to (7) are civil penalty provisions.

Exceptions

(9) Subsection (3) does not apply if:

(a) either:

(i) the ordering institution has established on reasonable

grounds that the beneficiary institution is not capable of

receiving the information securely; or

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(ii) the ordering institution reasonably believes that there is

a risk that the beneficiary institution is not capable of

safeguarding the confidentiality of the information; and

(b) the ordering institution makes and keeps a record of the

reasons for not passing on the information.

(10) Subsection (6) does not apply if:

(a) the beneficiary institution has established on reasonable

grounds that an institution in the value transfer chain is not

capable of passing on the information securely; and

(b) in accordance with the beneficiary institution's AML/CTF

program, the beneficiary institution appropriately identifies,

assesses, mitigates and manages the risks of money

laundering, financing of terrorism and proliferation financing

that the beneficiary institution may reasonably face in

providing the designated service.

(11) A person who wishes to rely on subsection (9) or (10) bears an

evidential burden in relation to that matter.

23 Section 67

Repeal the section, substitute:

67 Exemptions--general

(1) The AML/CTF Rules may provide that this Part, or a specified

provision of this Part, does not apply:

(a) to a specified kind of designated service; or

(b) to a transfer of value that occurs in specified circumstances.

(2) AML/CTF Rules made for the purposes of subsection (1) may

make different provision in relation to different kinds of

institutions, information, circumstances or any other matter. This

does not limit subsection 33(3A) of the

Acts Interpretation Act

1901

67A Exemption--escrow services

(1) This section applies to a person if:

(a) the person is any of the following:

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(i) a qualified accountant;

(ii) a reporting entity that uses qualified accountants to

supply professional accounting services;

(iii) a legal practitioner (however described);

(iv) a reporting entity that uses legal practitioners (however

described) to supply professional legal services; and

(b) the person provides a designated service covered by item 3 of

table 6 in section 6 for the purposes of an escrow agreement.

(2) Despite section 6, the designated service provided by the person, to

the extent that it is provided for the purposes of the escrow

agreement, is not also a designated service covered by item 29 or

30 of table 1 in that section.

24 Subsection 68(1)

Omit "or 3".

25 Sections 69 to 72

Repeal the sections.

26 Section 73

Omit "designated" (wherever occurring).

27 Subsection 74(1A) (heading)

Omit "

designated

28 Subsections 74(1A)

Omit "designated".

29 Subsection 74(1B) (heading)

Omit "

designated

30 Subsections 74(1B)

Omit "designated".

31 Division 4 of Part 10

Repeal the Division.

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32 Section 118

Omit "115," (wherever occurring).

33 Subsection 184(4) (after paragraph (fb) of the definition of

designated infringement notice provision)

Insert:

(ff) subsections 64(2), (3) and (5) (which deal with obligations of

ordering institutions relating to transfers of value);

(fg) subsections 66(4) and (5) (which deal with obligations of

intermediary institutions relating to transfers of value);

(fh) subsections 66A(4) and (7) (which deal with obligations of

ordering and beneficiary institutions relating to virtual asset

transfers);

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Part 2--International value transfer services

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

34 Section 4

Omit "international funds transfer instructions", substitute "information

about international value transfer services".

35 Section 5 (definition of international funds transfer

instruction)

Repeal the definition.

36 Section 5

Insert:

international value transfer service

has the meaning given by

section 45.

37 Section 40

Omit:

•

If a person sends or receives an international funds transfer

instruction, the person must give the AUSTRAC CEO a

report about the instruction.

substitute:

•

If a person provides an international value transfer service,

the person must give the AUSTRAC CEO a report about

the provision of the service.

•

If a person provides a designated service involving a

transfer of virtual assets to or from an unverified

self-hosted virtual asset wallet, the person must give the

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AUSTRAC CEO a report about the provision of the

service.

38 Division 4 of Part 3

Repeal the Division, substitute:

Division 4--International value transfer services and

transfers of value involving unverified self-hosted

virtual asset wallets

45 International value transfer services

(1) A service is an

international value transfer service

if:

(a) the service is covered by item 29 or 30 of table 1 in section 6;

and

(b) either:

(i) the value to be transferred is in Australia and, as a result

of the provision of the service, the value will be in a

foreign country; or

(ii) the value to be transferred is in a foreign country and, as

a result of the provision of the service, the value will be

in Australia.

(2) For the purposes of subsection (1), the AML/CTF Rules may

specify the circumstances in which the value is

a country.

46 Reports of international value transfer services

Scope

(1) This section applies to a reporting entity if:

(a) the reporting entity commences to provide an international

value transfer service at or through a permanent

establishment of the reporting entity in Australia; and

(b) such other conditions (if any) as are set out in the AML/CTF

Rules are satisfied.

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Report

(2) The reporting entity must give the AUSTRAC CEO a report about

the provision of the international value transfer service within 10

business days after the reporting entity passes on or receives the

transfer message for the transfer of value.

(3) Subsection (2) does not apply if, within the 10 business day period

mentioned in that subsection, the reporting entity:

(a) reasonably determines that the transfer of value will not

occur; and

(b) takes reasonable steps to ensure that the transfer of value will

not occur.

(4) A report under subsection (2) must:

(a) be in accordance with the approved form, or in a manner

specified in the AML/CTF Rules; and

(b) contain the information required by the AML/CTF Rules.

Note:

For additional rules about reports, see section 244.

Obligation must be discharged by intermediary institution in

certain circumstances

(5) The AML/CTF Rules may specify circumstances in which the

obligation imposed on a reporting entity by subsection (2) must be

discharged by an intermediary institution in the value transfer

chain. If the AML/CTF Rules specify such circumstances, the

obligation imposed by subsection (2) must be discharged by the

intermediary institution in accordance with the AML/CTF Rules.

Obligation may be discharged by intermediary institution in

certain circumstances

(6) The obligation imposed on a reporting entity by subsection (2) may

be discharged by an intermediary institution in the value transfer

chain if:

(a) the intermediary institution is an intermediary institution that

provides, or will provide, the designated service covered by

item 31 of table 1 in section 6; and

(b) the reporting entity has entered into a written agreement or

arrangement with the intermediary institution; and

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intermediary institution to comply with the obligation.

Civil penalty

(7) Subsections (2) and (5) are civil penalty provisions.

Exemptions

(8) This section does not apply to an international value transfer

service of a kind specified in the AML/CTF Rules.

(9) This section does not apply to a transfer of value that occurs in

circumstances specified in the AML/CTF Rules.

46A Reports of transfers of value involving unverified self-hosted

virtual asset wallets

Scope

(1) This section applies to a reporting entity if:

(a) the reporting entity commences to provide a designated

service covered by item 29 or 30 of table 1 in section 6 at or

through a permanent establishment of the reporting entity in

Australia; and

(b) the service involves:

(i) receiving virtual assets transferred from a self-hosted

virtual asset wallet; or

(ii) transferring virtual assets to a self-hosted virtual asset

wallet; and

has not been verified by the reporting entity in accordance

with the reporting entity's AML/CTF program.

Report

(2) The reporting entity must give the AUSTRAC CEO a report about

the provision of the designated service within 10 business days

after commencing to provide the service.

(3) A report under subsection (2) must:

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(a) be in accordance with the approved form, or in a manner

specified in the AML/CTF Rules; and

(b) contain the information required by the AML/CTF Rules.

Note:

For additional rules about reports, see section 244.

Civil penalty

(4) Subsection (2) is a civil penalty provision.

Exemptions

(5) This section does not apply to transfer of value of a kind specified

in the AML/CTF Rules.

(6) This section does not apply to a transfer of value that occurs in

circumstances specified in the AML/CTF Rules.

39 Before section 49

Insert:

48A Amending or withdrawing reports

(1) The AML/CTF Rules may make provision in relation to the

amendment or withdrawal of a report given under section 41, 43,

46 or 46A.

(2) Without limiting subsection (1), the AML/CTF Rules may deal

with the following:

(a) timeframes within which requests to amend or withdraw a

report may or must be made;

(b) timeframes within which a report must be amended or

withdrawn if a request is accepted;

withdraw a report;

(d) the consequences for amending or withdrawing a report.

40 Section 49

Omit "or 45" (wherever occurring)", substitute ", 46 or 46A".

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41 Section 51

Omit "45", substitute "46, 46A".

42 Subparagraph 51G(3)(c)(ii)

Repeal the subparagraph, substitute:

(ii) section 46 (reports of international value transfer

services);

(iia) section 46A (reports of transfers of value involving

unverified self-hosted virtual asset wallets);

43 Subsection 184(1C)

Omit "45(2)", substitute "46(2) or (5), 46A(2)".

44 Subsection 184(4) (paragraph (d) of the definition of

designated infringement notice provision)

Repeal the paragraph, substitute:

(d) subsection 46(2) or (5) (which deals with reporting about

international value transfer services);

(da) subsection 46A(2) (which deals with reporting about

transfers of value involving unverified self-hosted virtual

asset wallets);

45 Paragraph 191(2)(b)

Omit "45(2)", substitute "46(2) or (5), 46A(2)".

Schedule 9

Powers and definitions

Part 1

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Schedule 9--Powers and definitions

Part 1--Examination power

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 5

Insert:

examinee

, in relation to an examination under Division 3 of

Part 14, means the person who appears for examination.

examiner

, in relation to an examination under Division 3 of

Part 14, means the AUSTRAC CEO and includes:

(a) a delegate of the AUSTRAC CEO; and

(b) a consultant engaged under subsection 225(1) to perform

services as an examiner.

statement

, in relation to an examination under Division 3 of

Part 14, includes a question asked, an answer given, and any other

comment or remark made, at the examination.

written record

, in relation to an examination under Division 3 of

Part 14, means:

(a) a record of the examination:

(i) that is made in writing; or

(ii) as reduced to writing; or

(b) a part of such a record.

2 Before section 166

Insert:

Division 1--Introduction

3 Section 166

Repeal the section, substitute:

Powers and definitions

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166 Simplified outline

An authorised officer may obtain information or documents.

If the AUSTRAC CEO believes on reasonable grounds that a

person has information or a document that is relevant to

compliance with this Act, the regulations or the AML/CTF Rules,

or an offence against the

Crimes Act 1914

or the

Criminal Code

that relates to this Act, the regulations or the AML/CTF Rules, the

AUSTRAC CEO may require the person:

(a)

to produce to the AUSTRAC CEO, within the period

and in the manner specified in the notice, any such

documents; or

(b)

to appear before an examiner for examination under this

Division on oath or affirmation and to answer questions,

and to produce any such documents.

The examiner may, and must if the examinee so requests, cause a

record to be made of statements made at an examination under this

Division.

A statement made by a person at an examination under this

Division of the person is admissible in evidence against the person

in certain proceedings except in certain circumstances.

4 Before section 167

Insert:

Division 2--Powers of authorised officers

5 At the end of Part 14

Add:

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Division 3--Other powers to obtain information and

documents

Subdivision A--Examination of persons

172A Power of AUSTRAC CEO to obtain information and

documents

(1) This section applies if the AUSTRAC CEO believes on reasonable

grounds that a person has information or a document that is

relevant to:

(a) compliance with this Act, the regulations or the AML/CTF

Rules; or

(b) an offence against the

Crimes Act 1914

or the

Criminal Code

that relates to this Act, the regulations or the AML/CTF

Rules.

(2) The AUSTRAC CEO may, by written notice given to the person,

require the person:

(a) to produce to the AUSTRAC CEO, within the period and in

the manner specified in the notice, any such documents; or

(b) to appear before an examiner at the time and place specified

in the notice:

(i) for examination under this Division, on oath or

affirmation and to answer questions; and

(ii) to produce any such documents.

(3) The notice must:

(a) if paragraph (2)(b) applies--state the general nature of the

matter to which the questions will relate; and

(b) in any case set out the effect of subsections (4) and 172F(1).

(4) A person commits an offence if the person intentionally or

recklessly fails to comply with a notice under subsection (2).

Penalty: Imprisonment for 2 years or 100 penalty units, or both.

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172B Proceedings at examination

Sections 172C to 172H apply if, in accordance with a notice given

under section 172A, a person (in this Division called the

examinee

) appears before another person (in this Division called

the

examiner

) for examination.

172C Requirements made of persons appearing for examination

(1) If a person appears for examination in accordance with a notice

given under subsection 172A(2), the examiner may examine the

person on oath or affirmation and may, for that purpose:

(a) require the person to either take an oath or make an

affirmation; and

(b) administer an oath or affirmation to the person.

(2) The oath or affirmation to be taken or made by the examinee for

the purposes of the examination is an oath or affirmation that the

statements that the examinee will make will be true.

(3) A person commits an offence of strict liability if the person refuses

or fails to comply with a requirement made under subsection (1).

Penalty: 3 months imprisonment.

(4) The examiner may require the person to answer a question that is

put to the person at the examination and is relevant to:

(a) compliance with this Act, the regulations or the AML/CTF

Rules; or

(b) an offence against the

Crimes Act 1914

or the

Criminal Code

that relates to this Act, the regulations or the AML/CTF

Rules.

(5) A person commits an offence if the person intentionally or

recklessly refuses or fails to comply with a requirement made

under subsection (4).

Penalty: Imprisonment for 2 years.

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172D Examination to take place in private

(1) An examination under this Division must take place in private and

the examiner may give directions about who may be present during

it, or during a part of it.

(2) A person commits an offence of strict liability if:

(a) the person is present at the examination; and

(b) the person is not:

(i) the examiner or examinee; or

(ii) a member of the staff of AUSTRAC approved by the

examiner; or

(iii) entitled to be present by virtue of a direction under

subsection (1) or subsection 172F(1).

Penalty: 30 penalty units.

172E Procedures for holding an examination

(1) The examiner may decide to hold an examination under this

Division:

(a) at one or more physical venues; or

(b) at one or more physical venues and using virtual examination

technology that allows a person to appear at all or part of the

examination without being physically present at the

examination; or

(2) Subsection (3) applies if the examination is held:

(a) at one or more physical venues and using virtual examination

technology; or

(b) using virtual examination technology only.

(3) The examiner must ensure that the use of the virtual examination

technology is reasonable.

(4) If the examination is held:

(a) at more than one physical venue; or

(b) at one or more physical venues and using virtual examination

technology; or

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the examiner may appoint a single place and time at which the

examination is taken to have been held.

(5) This section applies to part of an examination in the same way that

it applies to all of an examination.

(6) In this section:

virtual examination technology

means any technology that allows

a person to appear at all or part of an examination under this

Division without being physically present at the examination.

172F Examinee's lawyer may attend

(1) The examinee's lawyer may be present at the examination and

may, at such times during the examination as the examiner

determines:

(a) address the examiner; and

(b) examine the examinee;

about matters about which the examiner has examined the

examinee.

(2) If, in the examiner's opinion, a person is trying to obstruct the

examination by exercising rights under subsection (1), the

examiner may require the person to stop addressing the examiner,

or examining the examinee, as the case requires.

(3) A person commits an offence of strict liability if the person refuses

or fails to comply with a requirement made under subsection (2).

Penalty: 20 penalty units.

172G Record of examination

(1) The examiner may, and must if the examinee so requests, cause a

record to be made of statements made at an examination under this

Division.

(2) If a record made under subsection (1) is in writing or is reduced to

writing:

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(a) the examiner may require the examinee to read it, or to have

it read to the examinee, and may require the examinee to sign

it; and

(b) the examiner must, if requested in writing by the examinee to

give to the examinee a copy of the written record, comply

with the request without charge but subject to such

conditions (if any) as the examiner imposes.

(3) A person commits an offence of strict liability if the person fails to

comply with a requirement made under paragraph (2)(a).

Penalty: 3 months imprisonment.

172H Giving to other persons copies of written record of

examination

(1) The AUSTRAC CEO may give a copy of the whole or a part of a

written record of an examination made under subsection 172G(1)

to a person's lawyer if the lawyer satisfies the AUSTRAC CEO

that the person is carrying on, or is contemplating in good faith, a

proceeding in respect of a matter to which the examination related.

(2) A person commits an offence of strict liability if:

(a) the AUSTRAC CEO gives a copy of the whole or a part of a

written record of an examination to a person under

subsection (1); and

(b) the person, or any other person who has possession, custody

or control of the copy or a copy of it:

(i) uses the copy or a copy of it; or

(ii) publishes, or communicates to another person, the copy,

a copy of it, or any part of the copy's contents;

except in connection with preparing, beginning or carrying

on, or in the course of, a proceeding.

Penalty: 30 penalty units.

(3) The AUSTRAC CEO may, subject to such conditions (if any) as it

imposes, give to a person a copy of the whole or a part of a written

record of the examination made under subsection 172G(1).

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172J Copies of record of examination given subject to conditions

A person (the

first person

) commits an offence of strict liability if:

(a) a copy of the whole or a part of a record is given to a person

under subsection 172G(2) or 172H(3) subject to conditions;

and

(b) the first person:

(i) is the person referred to in paragraph (a); or

(ii) has possession, custody or control of the copy or a copy

of it; and

(d) the first person's conduct breaches the condition.

Penalty: 30 penalty units.

172K Self-incrimination

(1) For the purposes of this Division, it is not a reasonable excuse for

an individual to refuse or fail:

(a) to answer a question; or

(b) to produce a document; or

in accordance with a requirement made of the individual under this

Division, on the ground that answering the question, producing the

document or signing the record might tend to incriminate the

individual or expose the individual to a penalty.

(2) Subsection (3) applies if:

(a) before making an oral statement in answer to a question, or

signing a record, in accordance with a requirement made

under this Division, the individual claims that the statement

or the signing of the record (as the case may be) might tend

to incriminate the individual or make the individual liable to

a penalty; and

(b) the statement or the signing of the record (as the case may

be) might, in fact, tend to incriminate the individual or make

the individual so liable.

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(3) The statement or the fact that the individual has signed the record

(as the case may be) is not admissible in evidence against the

individual in:

(a) civil or criminal proceedings; or

(b) a proceeding for the imposition of a penalty;

other than a proceeding in respect of:

statement; or

(d) in the case of the signing of a record--the falsity of any

statement contained in the record.

Note:

The law relating to legal professional privilege is not affected by this

Act (see section 242).

Subdivision B--Evidentiary use of certain material

172L Statements made at an examination--proceedings against

examinee

(1) A statement that a person makes at an examination under this

Division of the person is admissible in evidence against the person

in a proceeding referred to in subsection (2) unless:

(a) because of subsection 172K(3), the statement is not

admissible in evidence against the person in the proceeding;

(b) the statement is not relevant to the proceeding and the person

objects to the admission of evidence of the statement; or

made at the examination, evidence of the other statement is

not tendered in the proceeding, and the person objects to the

admission of evidence of the first-mentioned statement; or

(d) the statement discloses matter in respect of which the person

could claim legal professional privilege in the proceeding if

this subsection did not apply in relation to the statement, and

the person objects to the admission of evidence of the

statement.

Note:

The law relating to legal professional privilege is not affected by this

Act (see section 242).

(2) For the purposes of subsection (1), the proceedings are:

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(a) a proceeding in a court; or

(b) a proceeding or hearing before, or an examination by or

before, a tribunal in Australia or any other body, authority or

person in Australia having power, by law or by consent of

parties, to hear, receive or examine evidence;

whether the proceeding, hearing or examination is of a civil,

administrative, criminal, disciplinary or other nature.

(3) Subsection (1) applies in relation to a proceeding against a person

even if it is heard together with a proceeding against another

person.

(4) If a written record of an examination of a person is signed by the

person under subsection 172G(2) or authenticated in any other

manner specified in the AML/CTF Rules, the record is, in a

proceeding, prima facie evidence of the statements it records, but

nothing in this Division limits or affects the admissibility in the

proceeding of other evidence of statements made at the

examination.

172M Statements made at an examination--other proceedings

(1) If direct evidence by a person (the

absent witness

) of a matter

would be admissible in a proceeding referred to in subsection (2), a

statement that the absent witness made at an examination under

this Division of the absent witness and that tends to establish that

matter is admissible in the proceeding as evidence of that matter:

(a) if it appears to the court or tribunal that:

(i) the absent witness is dead or is unfit, because of

physical or mental incapacity, to attend as a witness; or

(ii) the absent witness is outside the State or Territory in

which the proceeding is being heard and it is not

reasonably practicable to secure the witness' attendance;

(iii) all reasonable steps have been taken to find the absent

witness but the witness cannot be found; or

(b) if it does not so appear to the court or tribunal--unless

another party to the proceeding requires the party tendering

evidence of the statement to call the absent witness as a

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witness in the proceeding and the tendering party does not so

call the absent witness.

(2) For the purposes of subsection (1), the proceedings are:

(a) a proceeding in a court; or

(b) a proceeding or hearing before, or an examination by or

before, a tribunal in Australia or any other body, authority or

person in Australia having power, by law or by consent of

parties, to hear, receive or examine evidence;

whether the proceeding, hearing or examination is of a civil,

administrative, criminal, disciplinary or other nature.

172N Weight of evidence admitted under section 172M

(1) This section applies if evidence of a statement made by a person at

an examination under this Division of the person is admitted under

section 172M in a proceeding.

(2) In deciding how much weight (if any) to give to the statement as

evidence of a matter, regard is to be had to:

(a) how long after the matters to which it related the statement

was made; and

(b) any reason the person may have had for concealing or

misrepresenting a material matter; and

an inference about how accurate the statement is.

(3) If the person is not called as a witness in the proceeding:

(a) evidence that would, if the person had been so called, have

been admissible in the proceeding for the purpose of

destroying or supporting the person's credibility is so

admissible; and

(b) evidence is admissible to show that the statement is

inconsistent with another statement that the person has made

at any time.

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(4) However, evidence of a matter is not admissible under this section

if, had the person been called as a witness in the proceeding and

denied the matter in cross-examination, evidence of the matter

would not have been admissible if adduced by the cross-examining

party.

172P Objection to admission of statements made at examination

(1) A party (the

adducing party

) to a proceeding referred to in

subsection (2) may, not less than 14 days before the first day of the

hearing of the proceeding, give to another party to the proceeding

written notice that the adducing party:

(a) will apply to have admitted in evidence in the proceeding

specified statements made at an examination under this

Division; and

(b) for that purpose, will apply to have evidence of those

statements admitted in the proceeding.

(2) For the purposes of subsection (1), the proceedings are:

(a) a proceeding in a court; or

(b) a proceeding or hearing before, or an examination by or

before, a tribunal in Australia or any other body, authority or

person in Australia having power, by law or by consent of

parties, to hear, receive or examine evidence;

whether the proceeding, hearing or examination is of a civil,

administrative, criminal, disciplinary or other nature.

(3) A notice under subsection (1) must set out, or be accompanied by

writing that sets out, the specified statements.

(4) Within 14 days after a notice is given under subsection (1), the

other party may give to the adducing party a written notice:

(a) stating that the other party objects to specified statements

being admitted in evidence in the proceeding; and

(b) specifies, in relation to each of those statements, the grounds

of objection.

(5) The period prescribed by subsection (4) may be extended by the

court or tribunal or by agreement between the parties concerned.

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(6) On receiving a notice given under subsection (4), the adducing

party must give to the court or tribunal or other body referred to in

paragraph (2)(b) (as the case requires) a copy of:

(a) the notice under subsection (1) and any writing that

subsection (3) required to accompany that notice; and

(b) the notice under subsection (4).

(7) If subsection (6) is complied with, the court or tribunal or other

body may either:

(a) determine the objections as a preliminary point before the

hearing of the proceeding begins; or

(b) defer determination of the objections until the hearing.

(8) If a notice has been given in accordance with subsections (1) and

(3), the other party is not entitled to object at the hearing of the

proceeding to a statement specified in the notice being admitted in

evidence in the proceeding, unless:

(a) the other party has, in accordance with subsection (4),

objected to the statement being so admitted; or

(b) the court or tribunal or other body gives the other party leave

to object to the statement being so admitted.

172Q Material otherwise admissible

Nothing in this Division renders evidence inadmissible in a

proceeding in circumstances where it would have been admissible

in that proceeding if this Division had not been enacted.

Subdivision C--Miscellaneous

172R Application of Crimes Act and Evidence Act

(1) For the purposes of Part III of the

Crimes Act 1914

, an examination

under this Division is a judicial proceeding.

(2) Part 2.2, sections 69, 70, 71 and 147 and Division 2 of Part 4.6 of

the

Evidence Act 1995

apply to an examination under this Division

in the same way that they apply to a proceeding to which that Act

applies under section 4 of that Act.

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Part 2--Information gathering power

Division 1

--Main amendments

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

6 After section 49A

Insert:

49B Notice to obtain information or documents in certain

circumstances

Scope

(1) This section applies if a person has information or a document that

may assist the AUSTRAC CEO with:

(a) obtaining or analysing information to support efforts to

combat money laundering, terrorism financing, proliferation

financing or other serious crimes; or

(b) identifying trends, patterns, threats or vulnerabilities

associated with money laundering, terrorism financing,

proliferation financing or other serious crimes;

for the purposes of the performance of functions of the AUSTRAC

CEO.

Requirements

(2) The AUSTRAC CEO may, by written notice given to the person,

require the person:

(a) to give to the AUSTRAC CEO, within the period and in the

manner specified in the notice, any such information; or

(b) to produce to the AUSTRAC CEO, within the period and in

the manner specified in the notice, any such documents.

(3) The AUSTRAC CEO must not give a notice under subsection (2)

to a person unless the AUSTRAC CEO reasonably believes that

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the person has knowledge of the information, or possession or

control of the document, that is specified in the notice.

Content of notice

(4) The period specified in the notice in accordance with

paragraph (2)(a) or (b) must be at least 14 days after the notice is

given unless:

(a) the AUSTRAC CEO considers that specifying a shorter

period is necessary; and

(b) the shorter period specified is reasonable in the

circumstances.

(5) A notice under subsection (2) must set out the effect of the

following provisions:

(a) subsection (7);

(b) section 136;

Note 1:

Section 136 is about giving false or misleading information.

Note 2:

Section 137 is about producing false or misleading documents.

Compliance

(6) A person must comply with a notice under subsection (2).

Civil penalty provisions

(7) Subsection (6) is a civil penalty provision.

49C Authorisation to obtain information or documents in certain

circumstances

Scope

(1) This section applies if a person has information or a document that

may assist the AUSTRAC CEO with:

(a) obtaining or analysing information to support efforts to

combat money laundering, terrorism financing, proliferation

financing or other serious crimes; or

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(b) identifying trends, patterns, threats or vulnerabilities

associated with money laundering, terrorism financing,

proliferation financing or other serious crimes;

for the purposes of the performance of functions of the AUSTRAC

CEO.

Authorisation

(2) The AUSTRAC CEO may, by written notice given to the person,

authorise the person:

(a) to give to the AUSTRAC CEO any such information; or

(b) to produce to the AUSTRAC CEO any such documents.

Content of notice

(3) A notice under subsection (2) must set out the effect of the

following provisions:

(a) subsection (5);

(b) section 136;

Note 1:

Section 136 is about giving false or misleading information.

Note 2:

Section 137 is about producing false or misleading documents.

Information disclosure etc.

(4) A person may give information or produce a document to the

AUSTRAC CEO in accordance with a notice under subsection (2).

Note:

This subsection constitutes an authorisation for the purposes of the

Privacy Act 1988

and other laws.

(5) This section applies despite any general law obligation of

confidence.

7 Section 50A (at the end of the heading)

Add "

, 49B

or 49C

8 Paragraph 50A(1)(b)

Omit "or this section", substitute ", 49B or 49C".

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9 Paragraphs 50A(3)(a) and (b)

Omit "or this section", substitute ", 49B or 49C".

10 Section 51

Omit "or 49", substitute ", 49, 49B or 49C".

11 Section 120

Before:

•

The AUSTRAC CEO may authorise officials of

Commonwealth, State or Territory agencies to access

AUSTRAC information for the purposes of performing the

agency's functions and duties and exercising the agency's

powers.

insert:

•

Certain persons must not disclose information relating to the

giving or production of certain reports, information or other

documents.

12 After subsection 123(2)

Insert:

(2A) If a person (the

first person

) is required by a notice under

subsection 49B(2) to give information or produce a document, the

first person must not disclose to another person (except an

AUSTRAC entrusted person):

(a) that the first person is or has been required by a notice under

subsection 49B(2) to give information or produce a

document; or

(b) that the information has been given or the document has been

produced.

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13 Subsection 123(10)

Omit "a reporting entity is not to be required to disclose to a court or

tribunal information mentioned in subsection (1) or (2)", substitute "a

person is not to be required to disclose to a court or tribunal information

mentioned in subsection (1), (2) or (2A)".

14 Paragraph 123(11)(a)

After "(2),", insert "(2A),".

15 Subsection 167(1)

Repeal the subsection, substitute:

(1) This section applies to a person if an authorised officer reasonably

believes that the person has knowledge of information, or

possession or control of a document, that is relevant to the

compliance with or enforcement of:

(a) an offence provision of this Act or the regulations; or

(b) a civil penalty provision of this Act or the regulations; or

Crimes Act 1914

or the

Criminal

Code

, to the extent that it relates to this Act.

16 After subsection 167(3)

Insert:

Compliance

(3A) A person must comply with a notice given under subsection (2).

(3B) Subsection (3A) is a civil penalty provision.

17 At the end of paragraph 169(2)(d)

Add:

; or (iii) proceedings for an offence against a provision covered

by the definition of

money laundering

in section 5; or

(iv) proceedings for an offence against a provision covered

by the definition of

financing of terrorism

in section 5;

(v) proceedings for an offence against a provision covered

by the definition of

proliferation financing

in section 5.

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18 Subsection 184(4) (after paragraph (f) of the definition of

designated infringement notice provision)

Insert:

(fb) subsection 49B(6) (which deals with complying with a notice

requiring certain information or documents);

19 At the end of subsection 184(4) (at the end of the

definition of designated infringement notice provision)

Add:

; (h) subsection 167(3A) (which deals with complying with a

notice requiring certain information or documents).

Division 2

--Consequential amendments

Freedom of Information Act 1982

20 Subparagraph 7(2G)(a)(iii)

After "section 49", insert ", 49B or 49C".

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Definitions

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Part 3--Definitions

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

21 Section 5 (definition of credit card)

Repeal the definition, substitute:

credit card

is a thing (whether real or virtual) that is one or more of

the following:

(a) a thing of a kind commonly known as a credit card;

(b) a similar thing intended for use by a person in obtaining

access to an account that is held by the person for the purpose

of obtaining money, goods or services on credit;

issue to their customers, or prospective customers, for use in

obtaining goods or services from those persons on credit;

(d) a thing that may be used as a thing referred to in

paragraph (a), (b) or (c).

22 Section 5 (definition of debit card)

Repeal the definition, substitute:

debit card

means:

(a) a thing (whether real or virtual) that is intended for use by a

person in obtaining access to an account that is held by the

person for the purpose of withdrawing or depositing physical

currency or obtaining goods or services; or

(b) a thing (whether real or virtual) that may be used as a thing

referred to in paragraph (a).

23 Section 5 (definition of derivative)

Repeal the definition, substitute:

derivative

: see subsections 7A(3) and (4).

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24 Section 5 (definition of issue)

Omit "includes grant or otherwise make available", substitute "has the

same meaning as in Chapter 7 of the

Corporations Act 2001

25 Section 5 (paragraphs (e) and (f) of the definition of loan)

Omit "(within the meaning of the

Competition and Consumer Act

2010

)'.

26 Section 5 (definition of money)

At the end of the definition, add:

; and (d) a digital representation of value:

(i) that is issued by or under the authority of a government

body; and

(ii) that is intended to function as money.

Example: Central bank digital currency.

26A Section 5 (after paragraph (b) of the definition of

qualified accountant)

Insert:

(ba) the Institute of Public Accountants; or

27 Section 5 (definition of security)

Repeal the definition, substitute:

security

: see subsections 7A(1) and (2).

28 Section 5 (definition of service)

Repeal the definition.

29 After section 7

Insert:

7A Securities and derivatives

(1)

Security

has the same meaning as in Chapter 7 of the

Corporations

Act 2001

(2) Despite subsection (1), the AML/CTF Rules may provide:

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(a) that a specified thing is a

security

; or

(b) that a specified thing is not a

security

(3)

Derivative

has the same meaning as in Chapter 7 of the

Corporations Act 2001

(4) Despite subsection (3), the AML/CTF Rules may provide:

(a) that a specified thing is a

derivative

; or

(b) that a specified thing is not a

derivative

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Part 4--Contingent amendment

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

30 Subsection 123(8B)

Omit "and (2) do not apply to the disclosure of information by a

reporting entity", substitute ", (2) and (2A) do not apply to the

disclosure of information by a person".

Exemptions

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Schedule 10--Exemptions

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 5 (definition of account)

Repeal the definition, substitute:

account

includes:

(a) an account which has a nil balance; and

(b) an account in relation to which no transactions have been

allowed.

2 Section 5

Insert:

Australian Border Force

has the same meaning as in the

Australian Border Force Act 2015

credit card acquirer

means a person who:

(a) is a participant of a designated payment system under the

Payment Systems (Regulation) Act 1998

; and

(b) pays, or accepts liability to pay, a merchant (either directly or

through another person) for goods or services obtained, or to

be obtained, by another person from the merchant in a credit

card transaction.

credit card issuer

means a person who:

(a) is a participant of a designated payment system under the

Payment Systems (Regulation) Act 1998

; and

(b) issues a credit card to a customer; and

(i) receives payment from the customer for amounts owed

by the customer, under the terms governing the credit

card, for credit card transactions; or

(ii) pays, or accepts liability to pay, a credit card acquirer

(either directly or through another person) for amounts

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paid or payable by the acquirer to a merchant for the

customer's credit card transactions.

deductible gift recipient

has the same meaning as in the

Income

Tax Assessment Act 1997

departing Australia superannuation payment

has the same

meaning as in the

Income Tax Assessment Act 1997

exchange settlement account

means an account provided by the

Reserve Bank of Australia that is used for the final settlement of

obligations between holders of such accounts.

extension notice

: see subsection 39B(7).

keep open notice

: see subsection 39B(1).

on-course bookmaker

means a person who carries on a business of

a bookmaker or a turf commission agent at a racecourse.

online gambling service

(a) means a designated service covered by an item of table 3 in

section 6 of this Act that is provided to a customer using any

of the means referred to in paragraph 5(1)(b) of

the

Interactive Gambling Act 2001

; and

(b) includes an excluded wagering service (within the meaning

of that Act), but does not include a telephone betting service

(within the meaning of that Act).

representative office,

of a foreign bank, is an office of the foreign

bank in Australia in respect of which the foreign bank has written

consent to establish the representative office in Australia for the

purposes of section 67 of the

Banking Act 1959

senior member

of an agency: see subsection 39B(3).

serious offence

: see subsection 39B(2).

totalisator agency board

means a board or authority established, or

a company holding a licence, under a law of a State or Territory for

purposes that include the purpose of operating a betting service.

Exemptions

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3 Subsection 6(2) (table item 1

, column headed "Provision of

a designated service", paragraph (e))

Repeal the paragraph, substitute:

(e) a credit card issuer; or

(f) a credit card acquirer; or

(g) a person specified in the AML/CTF Rules

4 Subsection 6(2) (table item 2

, column headed "Provision of

a designated service", paragraph (e))

Repeal the paragraph, substitute:

(e) a credit card issuer; or

(f) a credit card acquirer; or

(g) a person specified in the AML/CTF Rules

5 Subsection 6(2) (table item

3, column headed "Provision of

a designated service", paragraph (e))

Repeal the paragraph, substitute:

(e) a credit card issuer; or

(f) a credit card acquirer; or

(g) a person specified in the AML/CTF Rules

6 Subsection 6(2) (table item

47, column headed "Provision

of a designated service", paragraph (b))

Repeal the paragraph, substitute:

(b) the service is not provided in the course of carrying on a business that provides

short-term accommodation for travellers; and

7 At the end of Division 7 of Part 2

Add:

39A Exemption--assisting the investigation of certain offences

(1) This section applies if:

(a) a reporting entity receives a keep open notice in relation to a

customer; and

(b) the keep open notice is in force.

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(2) Despite any other provision of this Part or Part 1A, section 28, 30

or 26G does not apply to the reporting entity in respect of the

provision of a designated service to the customer to the extent that

the reporting entity reasonably believes that compliance with that

section would or could reasonably be expected to alert the

customer to the existence of a criminal investigation.

Note 1:

A suspicious matter reporting obligation does not arise for a reporting

entity in relation to a customer upon the receipt of a keep open notice.

However, a suspicious matter reporting obligation may otherwise arise

for the reporting entity in relation to the customer in accordance with

section 41.

Note 2:

A keep open notice does not compel a reporting entity to continue to

provide a designated service to a customer.

(3) For the purposes of subsection (2), it is immaterial whether the

reporting entity knows of the existence or otherwise of a criminal

investigation.

(4) If subsection (2) applies in relation to the provision by a reporting

entity of a designated service to a customer, section 139 (providing

a designated service using a false customer name or customer

anonymity) does not apply in relation to the provision by the

reporting entity of that designated service to the customer.

Note:

A defendant bears an evidential burden in relation to the matter in

subsection (4) (see subsection 13.3(3) of the

Criminal Code

39B Keep open notices

(1) A senior member of an agency mentioned in subsection (4) may

issue a notice (a

keep open notice

) to a reporting entity if the

senior member reasonably believes that the provision of a

designated service by the reporting entity to a customer would

assist in the investigation by the agency of a serious offence.

(2) A

serious offence

is:

(a) an offence against a law of the Commonwealth, or a law of a

State or Territory, that is punishable by imprisonment for 2

years or more; or

(b) an offence against a law of a foreign country that involves an

act or omission that, if it had occurred in Australia, would

have constituted an offence covered by paragraph (a).

Exemptions

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(3) A

senior member

of an agency is:

(a) the head of an agency mentioned in subsection (4); or

(b) a statutory office holder of an agency mentioned in

subsection (4); or

subsection (4) that:

(i) is an SES employee or acting SES employee in the

agency; or

(ii) holds or is acting in a position in the agency that is

equivalent to or higher than a position occupied by an

SES employee; or

(iii) holds or is acting in a position that is prescribed by the

AML/CTF Rules for the purposes of this paragraph.

(4) The agencies are as follows:

(a) the Australian Border Force;

(b) the Australian Crime Commission;

(d) the National Anti-Corruption Commission;

(e) the New South Wales Crime Commission

;

(f) the police force or police service of a State or the Northern

Territory;

(g) a Commonwealth, State or Territory agency prescribed by

the AML/CTF Rules.

(5) A keep open notice must:

(a) be in the form prescribed by the AML/CTF Rules for the

purposes of this paragraph; and

(b) contain such information, and be accompanied by such

documents, as is required by the AML/CTF Rules.

(6) Subject to subsections (7) and (8), a keep open notice is in force for

the period:

(a) starting on the day specified in the notice; and

(b) ending on the earlier of:

(i) the day that is 6 months after the day specified in the

notice; and

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(ii) if the investigation to which the notice relates has

ended--the day the agency that issued the notice

notifies the reporting entity and the AUSTRAC CEO

that the relevant investigation has ended.

(7) A senior member of an agency that issued a keep open notice to a

reporting entity may, by notice (an

extension notice

) to the

reporting entity in the form prescribed by the AML/CTF Rules for

the purposes of this subsection, extend the period for which the

keep open notice remains in force for a further period of 6 months

if:

(a) the extension notice is issued to the reporting entity before

the expiry of the keep open notice; and

(b) subject to subsection (8), the keep open notice has not

previously been extended more than once under this

subsection; and

continued provision of a designated service by the reporting

entity to the customer would assist in the investigation by the

agency of a serious offence.

(8) Paragraph (7)(b) does not apply in relation to an extension notice

if:

(a) the keep open notice has previously been extended at least

twice under subsection (7); and

(b) a senior member of the agency that issued the keep open

notice applies to the AUSTRAC CEO in the form prescribed

by the AML/CTF Rules for the purposes of this paragraph;

and

of a designated service by the reporting entity to the customer

would assist in the investigation by the agency of a serious

offence; and

(d) the AUSTRAC CEO gives notice, in writing, to the agency

that paragraph (7)(b) does not apply in relation to the

extension notice.

(9) The AUSTRAC CEO may give a notice under paragraph (8)(d)

more than once in relation to a particular keep open notice.

Exemptions

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39C Keep open notices--AUSTRAC oversight

(1) This section applies if a senior member of an agency mentioned in

subsection 39B(4) issues to a reporting entity:

(a) a keep open notice under subsection 39B(1); or

(b) an extension notice under subsection 39B(7).

(2) The senior member of the agency must send a copy of the keep

open notice or extension notice to the AUSTRAC CEO at the same

time the notice is issued to the reporting entity.

(3) The AUSTRAC CEO may revoke:

(a) a keep open notice issued under subsection 39B(1); or

(b) an extension notice under subsection 39B(7);

if the AUSTRAC CEO is satisfied that the notice does not comply

with the requirements of this Act or the AML/CTF Rules.

(4) If the AUSTRAC CEO revokes a notice under subsection (3), the

AUSTRAC CEO must notify:

(a) the agency that issued the notice; and

(b) the reporting entity to whom the notice was issued.

39D Exemption--when a suspicious matter reporting obligation

arises

(1) This section applies if a suspicious matter reporting obligation

arises for a reporting entity in relation to a customer.

Note:

For

suspicious matter reporting obligation

, see section 41.

(2) Despite any other provision of this Part or Part 1A, section 28, 30,

or 26G does not apply to the reporting entity in respect of the

provision of a designated service to the customer to the extent that

the reporting entity reasonably believes that compliance with that

section would or could reasonably be expected to alert the

customer to the reporting entity's suspicion.

39E Exemptions--specified conditions

Section 28 (undertaking initial customer due diligence) does not

apply to a reporting entity in respect of the provision of a

designated service to a customer if:

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(a) the designated service is specified in column 1 of an item of

the following table; and

(b) the conditions (if any) specified in column 2 of the item are

satisfied; and

obligation in relation to the customer under section 32.

Exemptions--specified conditions

Item

Column 1

Designated service

Column 2

Conditions

item 2 or 3 of table 1 in

section 6

(a) the reporting entity providing the

designated service is a financial institution;

and

(b) the designated service:

(i) relates to a correspondent banking

relationship; and

(ii) occurs in circumstances where there

is a geographical link in accordance

with section 100; and

(iii) relates to signatories to the account

who are employees of the other

financial institution

paragraph (a) of item 17 of

table 1 in section 6

(a) the reporting entity issues a cheque that the

reporting entity draws on itself; and

(b) the cheque is drawn from an account held

at the issuing ADI, building society, credit

union or representative office of a foreign

bank; and

and

(d) the face value of the cheque is less than

$5,000

paragraph (a) of item 17 of

table 1 in section 6

(a) the reporting entity issues a cheque that the

reporting entity draws on itself; and

(b) the cheque is funded by physical currency;

and

$1,000

item 25 or 26 of table 1 in

the sum of the face value of the traveller's

Exemptions

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Exemptions--specified conditions

Item

Column 1

Designated service

Column 2

Conditions

section 6

cheque or traveller's cheques issued, cashed or

redeemed in any one transaction is less than

$1,000

item 25 or 26 of table 1 in

section 6

(a) the issuing, cashing or redeeming of the

traveller's cheque or traveller's cheques is

one of 2 or more transactions that the

reporting entity reasonably believes to be

linked; and

(b) the sum of the face value of the traveller's

cheque or traveller's cheques issued,

cashed or redeemed as part of the linked

transactions is less than $1,000

item 33 of table 1 in

section 6

(a) the designated service is a disposal; and

(b) the disposal occurs on a prescribed

financial market (within the meaning of

the

Corporations Act 2001

); and

directly to an ancillary fund (within the

meaning of the

Income Tax Assessment Act

1997

) that provides an undertaking to:

(i) distribute, by cheque or electronic

funds transfer, the proceeds of the

disposal of the security to a

deductible gift recipient; and

(ii) list on its public website within 14

business days, for a period of 12

months, the details of the

distribution of the proceeds of the

disposal of the security to the

deductible gift recipient; and

(d) the value of the security does not exceed

$10,000

paragraph (a) of item 43 of

table 1 in section 6

(a) no additional contributions from the

customer are accepted in relation to the

interest; and

(b) the whole of the interest of the customer in

the superannuation fund is cashed out; and

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Exemptions--specified conditions

Item

Column 1

Designated service

Column 2

Conditions

customer in the superannuation fund was

held is closed as soon as practicable after

the cashing out of that interest; and

(d) the application for the interest in the

superannuation fund to be cashed out was

not made online using the Departing

Australia Superannuation Payment

internet-based application system

administered by the Australian Taxation

Office; and

(e) on the date the customer applies for the

interest in the superannuation fund to be

cashed out, the value of the interest does

not exceed $1,000

item 43 or 45 of table 1 in

section 6

(a) the application of the member relates to the

cashing out of the interest held by the

customer in:

(i) a superannuation fund; or

(ii) an approved deposit fund; or

(iii) a RSA; and

(b) the application was made online using the

Departing Australia Superannuation

Payment internet-based application system

administered by the Australian Taxation

Office; and

cashed out; and

(d) no additional contributions from the

customer are accepted in relation to the

customer's interest; and

(e) the account in which the interest of the

customer was held is closed as soon as

practicable after the cashing out of that

interest; and

(f) the value of the interest in the customer's

superannuation fund, approved deposit

fund or RSA does not exceed $5,000 on

Exemptions

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Exemptions--specified conditions

Item

Column 1

Designated service

Column 2

Conditions

the date of the application

item 50 of table 1 or

item 14 of table 3 in

section 6

(a) currency is moved into or out of an

account; and

(b) the provider of the account is an ADI, a

building society, a bank, a credit union or a

representative office of a foreign bank; and

$1,000

item 50 of table 1 or

item 14 of table 3 in

section 6

(a) currency is not moved into or out of an

account where the account provider is an

ADI, a building society, a bank, a credit

union or a representative office of a

foreign bank; and

(b) either or both of the following apply:

(i) the proceeds are in the form of

physical currency;

(ii) the funding source is in the form of

physical currency; and

$1,000

item 1 of table 2 in

section 6

the retail value of the bullion is less than

$5,000

item 1, 2, 4, 6, 7, 8 or 9 of

table 3 in section 6

(a) the reporting entity is a casino; and

(b) the designated service does not involve

online gambling services; and

of less than $5,000

item 1, 2, 4, 6, 7, 8 or 9 of

table 3 in section 6

(a) the reporting entity is a casino; and

(b) the designated service does not involve

online gambling services; and

customer giving or receiving only gaming

chips or tokens; and

(d) the designated service involves an amount

of $5,000 or more

item 1 or 2 of table 3 in

the reporting entity providing the designated

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Exemptions--specified conditions

Item

Column 1

Designated service

Column 2

Conditions

section 6

service is an on-course bookmaker or a

totalisator agency board

item 4, 7 or 8 of table 3 in

section 6

(a) the reporting entity is an on-course

bookmaker or totalisator agency board;

and

(b) the designated service involves an amount

of less than $5,000

item 5 or 6 of table 3 in

section 6

(a) the designated service is provided by the

reporting entity by way of a gaming

machine; and

(b) the designated service is not provided at a

casino

item 8, 9 or 10 of table 3 in

section 6

(a) the designated service is provided by the

reporting entity by way of a gaming

machine; and

(b) the designated service is not provided at a

casino; and

of less than $5,000

39F Exemption--intermediary institutions

(1) Divisions 1 to 6 do not apply to a designated service covered by

item 31 of table 1 in section 6.

Note:

Item 31 of table 1 in section 6 deals with an intermediary institution

passing on a transfer message in a value transfer chain.

(2) A reporting entity must monitor its customers, in relation to the

provision of a designated service covered by item 31 of table 1 in

section 6 at or through a permanent establishment of the reporting

entity in Australia, to identify unusual transactions and behaviours

of the customers (within the meaning of section 30) that may give

rise to a suspicious matter reporting obligation.

Note:

For

suspicious matter reporting obligation

, see section 41.

(3) Subsection (2) is a civil penalty provision.

Exemptions

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(4) A reporting entity that contravenes subsection (2) commits a

separate contravention of that subsection in respect of each

designated service that the reporting entity provides to a customer.

8 At the end of section 44 (after the note)

Add:

(7) Section 43 does not apply to a designated service that is:

(a) provided by a reporting entity that is an ADI; and

(b) provided to a customer that is an ADI.

(8) Section 43 does not apply to a designated service that is:

(a) provided by a reporting entity that is the holder of an

exchange settlement account; and

(b) provided to a customer that is the holder of an exchange

settlement account; and

reporting entity and the customer.

9 Section 106

Repeal the section.

10 Section 107

Repeal the section, substitute:

107 Transaction records to be retained

Retention of records

(1) If a reporting entity commences to provide, or provides, a

designated service to a customer, the reporting entity must retain

sufficient records to allow the reconstruction of individual

transactions relating to the provision of the designated service to

the customer.

(2) A record under subsection (1) must comply with any requirements

specified by the AML/CTF Rules.

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Period for which records must be retained

(3) A person who is or was a reporting entity must retain a record

referred to in subsection (1) for a period of 7 years beginning on

the day the record is made.

Civil penalty

(4) Subsections (1) and (3) are civil penalty provisions.

AML/CTF Rules

(5) The AML/CTF Rules may specify kinds of records to which this

section does not apply.

11 After Part 17A

Insert:

Part 17B--Exemptions

233H Simplified outline

The following is a simplified outline of this Part:

•

This Part provides that certain provisions of this Act do not

apply to certain persons, or in certain circumstances.

233J Exemption--Reserve Bank of Australia

The following provisions of this Act do not apply to the Reserve

Bank of Australia:

(a) Part 1A;

(b) Divisions 2 to 7 (other than section 39) of Part 2;

(d) Parts 4, 5 and 8;

(e) Divisions 3 to 6 of Part 10;

(f) section 236B.

Exemptions

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233K Exemption--operating no more than 15 gaming machines

Scope

(1) This section applies to a reporting entity if:

(a) the reporting entity and any related entity (within the

meaning of the

Corporations Act 2001

) that is a reporting

entity have a total entitlement under licences issued by one or

more States or Territories to operate no more than 15 gaming

machines; and

(b) the reporting entity and any related entity (within the

meaning of the

Corporations Act 2001

) that is a reporting

entity only provide one or more designated services covered

by any of the following:

(i) item 5 of table 3 in section 6;

(ii) item 6 of table 3 in section 6;

(iii) item 8 of table 3 in section 6;

(iv) item 9 of table 3 in section 6;

(v) item 10 of table 3 in section 6; and

subparagraph (b)(ii), (iii) or (iv) involves a game played on a

gaming machine.

Exemption

(2) The following provisions of the Act do not apply to the reporting

entity:

(a) Part 1A;

(b) Divisions 2 to 6 of Part 2;

(d) section 43;

(e) section 45;

(f) Division 5 of Part 3;

(g) Part 5;

(h) Division 1 of Part 10;

(i) sections 109 and 110;

(j) Divisions 3 to 7 of Part 10;

(k) section 236B.

Schedule 11

Repeal of the Financial Transaction Reports Act 1988

Part 1

Repeals

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Schedule 11--Repeal of the Financial

Transaction Reports Act 1988

Part 1--Repeals

Financial Transaction Reports Act 1988

1 The whole of the Act

Repeal the Act.

Repeal of the Financial Transaction Reports Act 1988

Schedule 11

Consequential amendments

Part 2

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Bill 2024

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Part 2--Consequential amendments

Division 1

--Amendment of the Anti-Money Laundering

and Counter-Terrorism Financing Act 2006

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

2 Section 5 (paragraph (g) of the definition of AUSTRAC

entrusted person)

Omit "repealed section 40A of the", substitute "section 40A of the

repealed".

3 Section 5 (note to the definition of AUSTRAC entrusted

person)

Before "

Financial

", insert "repealed".

4 Section 5 (paragraph (d) of the definition of AUSTRAC

information)

After "

1988

", insert ", as in force immediately before its repeal".

5 Subsection 49(1)

After "CEO under section 41, 43 or 45", insert "of this Act, or a

reporting entity communicated information to the AUSTRAC CEO

under subsection 16(1) or (1A) of the repealed

Financial Transaction

Reports Act 1988

6 Subparagraph 49(1)(i)(ii)

After "45", insert "of this Act, or subsection 16(1) or (1A) of the

repealed

Financial Transaction Reports Act 1988

,".

7 Subsection 50A(3)

Before "

Financial

", insert "repealed".

8 At the end of Division 3 of Part 10

Add:

Schedule 11

Repeal of the Financial Transaction Reports Act 1988

Part 2

Consequential amendments

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114B Retention of records made or obtained under the repealed

Financial Transaction Reports Act 1988

(1) This section applies to a reporting entity if, immediately before this

section commences, the reporting entity is retaining a record or a

copy of a record, for the purposes of Part III of the

Financial

Transaction Reports Act 1988

, in relation to a customer to whom

the reporting entity has provided, or is providing, a designated

service.

(2) The reporting entity must continue to retain the record, or a copy of

the record, until the end of the first 7-year period throughout the

whole of which the reporting entity did not provide any designated

services to the customer.

Civil penalty

(3) Subsection (2) is a civil penalty provision.

Designated business groups

(4) If:

(a) a reporting entity is a member of a designated business

group; and

(b) such other conditions (if any) as are specified in the

AML/CTF Rules are satisfied;

the obligation imposed on the reporting entity by subsection (2)

may be discharged by any other member of the group.

9 Paragraph 121(2)(a)

Before "

Financial

", insert "repealed".

10 Subsection 123(10)

Before "

Financial

", insert "repealed".

11 At the end of subparagraph 124(1)(a)(i)

Add "of this Act or subsection 16(1) or (1A) of the repealed

Financial

Transaction Reports Act 1988

Repeal of the Financial Transaction Reports Act 1988

Schedule 11

Consequential amendments

Part 2

No. , 2024

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Bill 2024

161

12 Subparagraph 124(1)(a)(iv)

Omit "section 41; and", substitute "section 41 of this Act or

subsection 16(1) or (1A) of the repealed

Financial Transaction Reports

Act 1988

;".

13 At the end of paragraph 124(1)(a)

Add:

(v) information given under subsection 16(4) of the

repealed

Financial Transaction Reports Act 1988

; and

14 Subparagraph 124(1)(b)(i)

After "subsection 41(2)", insert "of this Act or subsection 16(1) or (1A)

of the repealed

Financial Transaction Reports Act 1988

15 Subparagraph 124(1)(b)(ii)

After "subsection 41(2)", insert "of this Act or subsection 16(1) or (1A)

of the repealed

Financial Transaction Reports Act 1988

16 Subparagraph 124(1)(b)(iii)

After "subsection 41(2)", insert "of this Act or subsection 16(1) or (1A)

of the repealed

Financial Transaction Reports Act 1988

17 Subparagraph 124(1)(b)(iv)

After "section 41", insert "of this Act or subsection 16(1) or (1A) of the

repealed

Financial Transaction Reports Act 1988

18 At the end of subparagraph 124(1)(b)(v)

Add "of this Act or subsection 16(1) or (1A) of the repealed

Financial

Transaction Reports Act 1988

19 Paragraph 124(2)(b)

Before "

Financial

", insert "repealed".

20 Paragraph 126(3A)(c)

Before "

Financial

", insert "repealed".

Schedule 11

Repeal of the Financial Transaction Reports Act 1988

Part 2

Consequential amendments

162

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No. , 2024

21 Section 134

Before "

Financial

", insert "repealed".

22 Paragraph 175(3)(g)

Before "

Financial

", insert "repealed".

23 Subsection 184(4) (before paragraph (g) of the definition

of designated infringement notice provision)

Insert:

(fl) subsection 114B(2) (which deals with retaining certain

records made or obtained under the repealed

Financial

Transaction Reports Act 1988

);

24 Subsection 209(1)

Before "

Financial

", insert "repealed".

25 Subsection 211(3)

Before "

Financial

", insert "repealed".

Division 2

--Amendments of other Acts

Australian Securities and Investments Commission Act 2001

26 Section 243D

Repeal the section.

Commonwealth Electoral Act 1918

27 Subsection 90B(4) (table item 5)

Repeal the item.

28 Paragraph 90B(9)(b)

Omit "5,".

29 Subsection 91A(2C)

Repeal the subsection.

Repeal of the Financial Transaction Reports Act 1988

Schedule 11

Consequential amendments

Part 2

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

163

30 Subsection 91B(3)

Omit "5,".

Criminal Code Act 1995

31 Paragraphs 400.9(2)(a) and (d) of the Criminal Code

Before "

Financial

", insert "repealed".

Freedom of Information Act 1982

32 Subparagraph 7(2G)(a)(i)

Before "

Financial

", insert "repealed".

Proceeds of Crime Act 2002

33 Subsection 29(3)

Before "

Financial

", insert "repealed".

34 Section 338 (paragraphs (c), (d) and (e) of the definition of

serious offence)

Before "

Financial

", insert "repealed".

Surveillance Devices Act 2004

35 Subsection 6(1) (paragraph (c) of the definition of relevant

offence)

Before "

Financial

", insert "repealed".

Schedule 11

Repeal of the Financial Transaction Reports Act 1988

Part 3

Transitional provisions

164

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

No. , 2024

Part 3--Transitional provisions

36 Reports of suspect transactions

Despite the repeal of the

Financial Transaction Reports Act 1988

this Schedule, section 16 of that Act (as in force immediately before the

commencement of this item) continues to apply on and after that

commencement, as if that section had not been repealed, in relation to a

communication of information of a kind referred to in

paragraph (5A)(a), (b) or (c) or (5AA)(a) or (b) of that section.

Transitional rules

Schedule 12

No. , 2024

Anti-Money Laundering and Counter-Terrorism Financing Amendment

Bill 2024

165

Schedule 12--Transitional rules

1 Transitional rules

(1)

The Minister may, by legislative instrument, make rules prescribing

matters of a transitional nature (including prescribing any saving or

application provisions) relating to the amendments or repeals made by

this Act.

(2)

Without limiting subitem (1), rules made under this item before the end

of the period of 4 years starting on the day this Schedule commences

may provide that provisions of this Act, the

Anti-Money Laundering

and Counter-Terrorism Financing Act 2006

, or any other Act or

instrument, have effect with any modifications prescribed by the rules.

Those provisions then have effect as if they were so modified.

(3)

To avoid doubt, the rules may not do the following:

(a) create an offence or civil penalty;

(b) provide powers of:

(i) arrest or detention; or

(ii) entry, search or seizure;

(d) set an amount to be appropriated from the Consolidated

Revenue Fund under an appropriation in this Act;

(e) directly amend the text of this Act.

(4)

This Act (other than subitem (3)) does not limit the rules that may be

made under this item.

(109/24)

Commonwealth of Australia Bills

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING AMENDMENT BILL 2024